While around 24 firms had put in expressions of interest (EoIs), only half of them undertook due diligence for submitting financial bids. “This will be the first vertical among many of IL&FS that will come up for resolution. The financial bids are likely to be opened shortly,” sources said.
Gas utility GAIL (India) is one of the few firms which has submitted financial bids for the renewable (wind and solar) energy portfolio of the debt-laden Infrastructure Leasing and Financial Services (IL&FS), according to sources. While around 24 firms had put in expressions of interest (EoIs), only half of them undertook due diligence for submitting financial bids. “This will be the first vertical among many of IL&FS that will come up for resolution. The financial bids are likely to be opened shortly,” sources said.
Tata Power, Adani Power and JSW Energy were among the other firms to submit EoIs. FE could not ascertain the name of the other firms which submitted financial bids. The last date for submission of EoIs was December 10, 2018. While an email sent to GAIL remained unanswered, an IL&FS spokesperson said, “The bids for renewable assets have been received and are being processed.”
GAIL aims to increase its installed capacity of 128 MW of wind power through mergers and acquisitions, and also by bidding for commercially-viable tariff-based and viability gap funding-based green power projects. The company recently also signed a memorandum of understanding with BHEL to develop solar assets. Renewable portfolio divestment is part of IL&FS’ asset monetisation strategy to pare `94,000-crore debt. The renewable energy assets include operational wind projects with cumulative capacity of 873.5 MW and under-construction wind projects of 104 MW. The portfolio also includes asset management services for operating wind projects and business division conducting project development and implementation of wind projects.
In addition, IL&FS’ renewable assets also include businesses engaged in development and implementation of solar power projects for corporate customers with under-construction projects of around 300 MW. IL&FS’ energy assets, including thermal, have been valued at `8,000 crore. The renewable portfolio is likely to fetch around `6,000 crore, sources said. The group’s new board of directors which took over in October has decided to sell assets under various verticals, including roads, education, renewable energy and broking. LIC is the single largest shareholder in IL&FS with over 25% stake and Orix Corp owns a little over 23%.
IL&FS Employees Welfare Trust holds 12% in the company. The Abu Dhabi Investment Authority, HDFC and Central Bank of India hold 12.56%, 9.02% and 7.67%, respectively, in the cash-strapped company. The country’s largest lender, SBI, has around 7% stake in the company.