ReNew Power and NTPC are expected to submit binding bids soon to acquire PTC India’s wind power assets. The sale, managed by KPMG’s investment banking arm, could fetch a valuation of around 2,000 crore.
Mumbai: ReNew Power Ltd, India’s largest clean energy company, and state-run power utility NTPC Ltd have shown interest in the ongoing sale process of PTC India Ltd’s wind power business, said two people aware of the development, requesting anonymity.
“ReNew Power and NTPC have been involved in talks with the company for the last few weeks, and the two are expected to submit binding bids soon to acquire the assets. One or two other financial investors could also put a binding bid for the assets,” said the first person cited above.
He said the sale could fetch a valuation of around ₹2,000 crore. The investment banking arm of KPMG is managing the sale process, the person added.
Mint reported on 11 January that other buyers, such as the local arm of CLP Holdings Ltd, Macquarie Infrastructure and Real Assets (MIRA), and Hero Future Energies, had also expressed interest in the process.
Spokespersons for KPMG and ReNew Power declined to comment.
Emailed queries sent to NTPC on Wednesday remained unanswered.
“PTC India Ltd is considering various options for funding the growth of its subsidiary PTC Energy Ltd (PEL), including getting a suitable strategic investor on board. KPMG is advising PTC in this matter,” a PTC India spokesperson said in an email.
Mint first reported the sale process on 7 January.
PTC India’s subsidiary, PTC Energy Ltd, has around 290 megawatts (MW) of wind assets across Madhya Pradesh, Karnataka, and Andhra Pradesh.
Mint had on 23 August 2018 reported that PTC India was considering exiting its wind energy business as the power trader did not want to invest more in it, considering that the industry was moving from feed-in tariffs to auctions.
India’s wind sector has transitioned from a feed-in tariff regime, which ensured a fixed price for wind power producers, to tariff-based competitive auctions. Access to low-cost finance is a key competitive advantage in an auction-based system.
In addition, falling tariffs have also pushed the industry towards consolidation.
Several renewable energy deals are being worked on in the Indian market.
Mint reported earlier this year that Morgan Stanley was considering selling its stake in wind energy platform Continuum Wind Energy.
