IL&FS Group, in its statement, added that this development is a key step in the resolution process of IL&FS Group, being undertaken by the new board of IL&FS. While ORIX’s intent is a positive development for IL&FS, it will be a setback for GAIL’s renewable strategy.
In April, at the end of the binding bid stage under a publicly conducted sale process, GAIL had emerged the highest bidder for the seven SPVs, with total generation capacity of 874 Mw. “GAIL’s offer of approximately Rs 4,800 crore for 100 per cent of the enterprise value contemplated no haircut to the debt of SPVs, aggregating Rs 3,700 crore,” according to the IL&FS statement. ORIX needs to match this offer.
GAIL has been trying to expand its presence in renewable energy like solar and wind. In March, it entered into an MoU with Bharat Heavy Electricals (BHEL) for cooperation in development of solar-based projects.
The MoU is expected to help GAIL pursue bidding for commercial solar power projects. At present, GAIL has total installed capacity of 128.71 Mw of renewable energy, of which 117.95 Mw is in wind and 10.76 Mw in solar.
The state-owned company also operates India’s second-largest rooftop solar photovoltaic power plant at its petrochemical complex at Pata (Uttar Pradesh).
IL&FS, in its statement, added: “The completion of sale to ORIX will be subject to satisfaction of all compliances and approvals required under applicable laws — including approval of Justice (Retd) D K Jain and National Company Law Tribunal (NCLT), in accordance with the proposed Resolution Framework.”