ReNew Power Raises $140 Million From Global Investors For Expansion

In a clear indication that the Narendra Modi government’s mantra to promote green energy in the country in attracting global investors, ReNew Power Ventures has raised $140 million (Rs 835 crore) as funding from three investors -- Goldman Sachs, Asian Development Bank and Global Environment. The independent wind and solar power company, which is committed to reduce India’s carbon footprint, now plans to go public within a year.

Goldman Sachs, an original investor in the company, has pumped in $70 million into ReNew Power while Asian Development Bank (ADB) and alternative asset investment firm Global Environment Fund (GEF) have invested $50 million and $20 million, respectively.

After the latest fund infusion, the total equity investment in ReNew Power stands at $390 million( Rs 2,327 crore). Interestingly, this is the largest in India's renewable energy industry.

"If the market is supportive and there is a conducive environment for the renewable energy sector, we will do an IPO in a year or half," Sumant Sinha, chairman and chief executive officer at ReNew Power, said.

Earlier, there were reports that ReNew is looking for fresh investors. Goldman, which provided initial funding of $135 million in 2011, had committed to invest $320 million in the company. Currently, with new investors coming on board, Goldman's additional investment is kept on hold, said Sinha.

ReNew Power has also ventured into solar power production with a 50-Mw project in Madhya Pradesh. "We plan to increase our portfolio by 500 Mw by 2015, mainly dominated by wind power projects," Sinha said.

Sinha also asserted that the company would look forward to participate in the upcoming phase of the National Solar Mission, which aims to add 1,500 Mw to the country's current solar capacity of 2,600 Mw, if the government came up with appropriate policy measures like 'feed-in-tariff' model. At present, wind power production in the country stands at 20,000 Mw because of the feed-in-tariff mode of operation, concluded Sinha. (Image: Thinkstock)