SJVN wins bid to buy PTC's wind assets for Rs2,000 cr

11 Mar , 2021 By : kanchan Joshi

State-run hydropower generator SJVN Ltd has outbid NTPC Ltd to emerge as the preferred bidder for PTC India Ltd’s 288-megawatts (MW) wind power assets spread across Madhya Pradesh, Karnataka, and Andhra Pradesh, two people aware of the development said.

SJVN Ltd has received the letter of intent (LoI) for the deal that has an enterprise value of around Rs2,000 crore. This is part of the country’s largest electricity trader PTC India’s strategy to exit its wind power business, owned by unit, PTC Energy Ltd.

SBI Capital Markets Ltd is advisor to PTC India while EY is advisor to SJVN.

Mint reported earlier about NTPC and SJVN competing for PTC’s wind power assets. Electricity firms such as SJVN and NTPC have pivoted toward green energy against the backdrop of a rapidly evolving Indian energy landscape.

India has set a target of achieving a 450GW renewable energy capacity by 2030. It currently has an installed renewable energy capacity of 89.63GW, with around 49.59GW capacity under implementation and another 27.41GW tendered.

“SJVN has emerged as preferred bidder over NTPC and received LoI from PTC India with respect to acquisition of PTC Energy’s 288MW wind portfolio. It is in the process of taking approvals," said one of the two people cited above, requesting anonymity.

Several deals are in the works in the backdrop of an investment of Rs4.7 trillion in India’s renewable energy space in the last six years, with an expected Rs1 trillion investment opportunity annually till 2030.

“Currently, the divestment process of PTC Energy Ltd is on. At this juncture, therefore, the company would not like to comment on any market speculation," a PTC India spokesperson said in an emailed response.

Spokespersons for EY and SBI Capital declined comment. Queries emailed to the spokespersons of SJVN and NTPC on Tuesday remained unanswered till press time.

KPMG was previously hired to manage the sale, which saw initial interest from Macquarie Infrastructure and Real Assets, CLP India Pvt. Ltd, and Hero Future Energies. However, the deal could not be finalized. PTC India then decided to sell the assets to a government-owned firm, with SBI Capital advising it on the sale.

With PTC India having a significant exposure to Andhra Pradesh where the tariff was reduced from Rs4.84 per unit to Rs2.43 per unit, the deal has a deferred payout structure.