Inorganic moves in the renewable segment are picking up pace, with the latest target being Iron Triangle (earlier Backbone Enterprises), which has a 20 megawatt (MW) solar power capacity in Gujarat.
Inorganic moves in the renewable segment are picking up pace, with the latest target being Iron Triangle (earlier Backbone Enterprises), which has a 20 megawatt (MW) solar power capacity in Gujarat. Large players like, renewables major, ReNew Power Ventures, are believed to be in the race to buy the solar power assets of the Gujarat-based infrastructure player, said people familiar with the development. Iron Triangle had acquired the permission to construct a solar photo voltaic power plant at Shivlakha village in Kutch under the Gujarat government policy, and started with a 5MW unit in 2012. The capacity was later scaled up to 20 MW. The company has an operational contract for a period of 25 years, according to the company website. The facility generates 0.7 to 0.8 million unit of power per month. Industry sources indicate that the current going rate for solar assets is about Rs 5.5 crore per MW. This would put the estimated value of a deal at near Rs 110 crore, though there would be variations based on quality of assets, power sale agreements and so on. ReNew Power is being seen as the most likely contender for the asset, said the sources. When contacted for a response, ReNew Power chairman and chief executive officer, Sumant Sinha declined to comment on the development.
“I would not like to comment on the development,” Sinha said. ReNew Power was founded by Sumant Sinha, a former chief operating officer at wind turbine maker, Suzlon Energy. The company, which is majority owned by Goldman Sachs, has also received investments from Asian Development Bank, Abu Dhabi Investment Authority and Global Environment Fund. In February 2017, Japan’s JERA bought a 10% stake in ReNew Power, valuing the company at $2 billion. ReNew has been on an acquisition drive and recently acquired 103 MW of wind assets of the KC Thapar Group. The company has over the past six years increased its capacity from 200 MW in FY12 to 2,000 MW as on March 31, 2017.
Iron Triangle, erstwhile Backbone Enterprises, was established in 1991 as a partnership firm by Kishor Viramgami, Bhupendra Kumar Panchani and Bhovan Rangani in Rajkot. It is primarily involved in infrastructure development and construction of roads and highways.
The company is also involved in construction of dams and water distribution projects.