Piramal Group plans to buy operational renewable power projects of Mytrah
May 14, 2019
Ajay Piramal-owned Piramal Group plans to buy operational renewable power projects of Mytrah Energy, making the potential acquisition the first set of assets in the newly launched private InvIT that is co-owned by the Piramal Group and Canadian pension fund CPPIB.
Both partners are keen as Piramal and CPPIB know Mytrah Energy assets well and discussions are on for some time, one of two industry sources aware of the development told ET.
In 2017, Piramal had provided loans worth $277 million to Mytrah through non-convertible debentures and the amount will be due in the next few years. Mytrah had used the funds to provide exit options to existing investors such as IDFC Alternatives, AION Capital, Merrill Lynch and Goldman Sachs.
Mails sent to Ravi Kailas, founder and chairman, Mytrah Group, did not elicit any response. Piramal and CPPIB declined to comment. Mytrah has built 2000-MW of operational and in-the-works renewable power. These assets are spread across 15 wind farms in nine states — Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Karnataka, Punjab and Tamil Nadu.
Mytrah sells power mainly to state grids through long-term Power Purchase Agreements (PPAs). In addition, its 100.5-MW Tamil Nadu project sells directly to industrial buyers in short-term deals. Last September, Mytrah Energy (India) had entered into a PPA with Solar Energy Corporation of India (SECI) to build a 300-MW wind energy project in Tamil Nadu. Mytrah Energy (India) reportedly has the country's largest wind data bank.