The Ahmedabad-based utilities group has trumped the other contenders in the fray including JSW Energy, Apraava Energy (formerly CLP India) and Singapore’s Sembcorp, the people cited earlier said.
Torrent Poweris the frontrunner to acquireVector GreenEnergy – US-based Global Infrastructure Partners’ 700MWclean energyplatform in India – in a deal worth about INR5,000 crore, according to several people aware of the development. The Ahmedabad-based utilities group has trumped the other contenders in the fray includingJSW Energy, Apraava Energy (formerly CLP India) and Singapore’s Sembcorp, the people cited earlier said.
If Torrent bags the deal, it would be the largest power sector buyout for the Ahmedabad-based utilities group, which had also bid for Anil Ambani’s Mumbai power distribution business but lost out to Adani in 2020.
Vector Green portfolio includes 19 ground-mounted utility scale projects located across eight states, as well as 89 rooftop solar projects on 216 roofs across seven states. An additional 90MW of solar projects are under implementation in Gujarat. Vector Green had expanded its portfolio in 2019 by acquiring about 225MW of solar generation capacity from RattanIndia. Emails queries sent to Global Infrastructure Partners (GIP) and Torrent Power remained unanswered till as of press time.ET had reported on July 13 that four companies had been shortlisted for the final round of negotiations. Standard Chartered Bank is advising GIP in selling the assets. The INR14,258-crore Torrent Power is a leading player in the country’s power sector with presence across the entire power value chain – generation, transmission and distribution.
GIP is a leading global infrastructure-focused investor that manages over $71 billion (INR5.3 lakh crore) of assets, including over 15GW ofrenewableprojects. GIP entered India in 2018 by acquiring the infrastructure asset management business ofIDFCAlternatives. The most significant attribute of the Vector Green portfolio is that 97% of the capacity is contracted with the best off-takers of the country, viz. SECI andNTPC, through 25-year, fixed-tariff power purchase agreements,Crisilsaid in a 2021 report. The proposed buyout of Vector Green will give Torrent Power a strong presence in the clean energy space. It will increase therenewable energycapacity of Torrent to close to 2.5GW.
Torrent has an aggregate installed generation capacity of 4.1GW, comprising 2.7GW of gas-based capacity, 1GW of renewable capacity, and 362MW of coal-based capacity. It has renewable projects of 715MW under development, for which letter of awards (LoAs) have been received and PPA has been executed.