IL&FS plans to sell stake in Shendra Green Energy

IL&FS has sought request for proposals to sell the stake of IL&FS Energy Development Company Ltd (IEDCL) in Shendra Green Energy Ltd (SGEL).

SGEL is a 100 per cent subsidiary of IEDCL.

In an advertisement, IL&FS has said that LSI Financial Services Pvt Ltd is the transaction advisor to IL&FS for the potential transaction.

SGEL is a 13 MW biomass-based power with 21.6 acres of land, incorporated on February 18, 2005 and is situated in Shendra MIDC Aurangabad, Maharashtra.

The company had signed PPA with Maharashtra State Electricity Distribution Company Limited (MSEDCL) for 13 years on October 12, 2006 and started commercial operation on December 7, 2008. Currently the plant is not in operation since June 2015.

On April 20, 2016, the Company had notified MSEDCL to terminate the PPA.

IL&FS said that the eligible applicants have to submit the RFP by 6 p.m., August 30, 2021.

"IL&FS reserves the right to suspend, modify or terminate the potential transaction at any time without providing any reason or incurring any liability to any party," the advertisement said.