News reports suggest there is ample demand for the renewable energy business of beleaguered Infrastructure Leasing and Financial Services Ltd (IL&FS). Global private equity funds are in the race, The Economic Times reported last week, while The Indian Express said nearly a dozen potential buyers have lined up for the assets.
While such news, typically leaked by merchant bankers, isn’t uncommon ahead of a transaction, the reported interest is understandable. The majority of the renewable energy assets on sale are the 873.5 megawatts (MW) of wind power assets, which have a lot going for them.
For one, these projects have tied up predetermined tariffs with buyers. This makes IL&FS’s wind assets far more remunerative compared to, say, projects being set up from scratch. Read More