Mumbai: Gas utility GAIL (India) is considering acquiring all of the wind energy assets held by a subsidiary of debt-laden Infrastructure Leasing and Financial Services (IL&FS), according to sources familiar with the matter. GAIL India is looking to buy 775 megawatts of wind energy assets from IL&FS Energy Development, and has approached investment bankers to advise on a possible deal, the sources said.
The new board of troubled IL&FS, which has defaulted on some of its debt, has decided to sell off its assets as part of a restructuring plan. The discussions are at a preliminary stage and a decision to bid hasn’t been made, the sources who they said. The sources said GAIL would not consider buying the entire wind energy assets of IL&FS unless offered at a steep discount.
“GAIL is not aware that IL&FS is in the market to sell its wind energy assets. When they come to the market and to us, we will have a look at it,” the sources said. A deal will give the state-run company an opportunity to add to its existing renewable energy portfolio of 129 megawatts and help offset emissions. For IL&FS, the asset sales are key to revive the beleaguered shadow lender whose payment defaults have sparked fears of a contagion across the financial system in India.
An IL&FS spokesman declined to comment, while GAIL’s spokeswoman didn’t immediately respond to emailed queries. GAIL had Rs 3,240 crore of cash, cash equivalents and short-term investments as of March 31. The wind energy assets held by the IL&FS unit are about 2 per cent of the country’s installed capacity in the segment.
