After putting two of its arms for sale, the crisis-hit Infrastructure Leasing & Financial Services (IL&FS) Group has put its renewable energy assets on the block.
After putting two of its arms for sale, the crisis-hit Infrastructure Leasing & Financial Services (IL&FS) Group has put its renewable energy assets on the block.
The group that has been defaulting on various payments since September said in a statement on Wednesday, "In order to ascertain market interest, and to examine feasibility of maximisation of value in an orderly and transparent manner, the Board... has today initiated the process of exploring the sale of controlling stake(s) held by IL&FS Group in renewable energy assets."
As per the plans, a total of 873.5 megawatt (mw) of operational wind power assets and 104 mw of under-construction wind power generating plants will go under the hammer by inviting Expressions of Interest (EOI).
Similarly, "businesses relating to project development and implementation of solar power generating plants and projects under development of approximately 300 mw capacity solar power plants for corporates, etc," are too are being monetised.
For its wind portfolio, IL&FS is also looking at asset management service providers to operate its assets, as well as for conducting project development and implementation.
In the near future, road assets and education arm of the group are also likely to be put up for sale.
Earlier this month, IL&FS Group had called for EOIs for two of its subsidiaries, IL&FS Securities Services and ISSL Settlement & Transaction Services. IL&FS last week received bids from over a dozen organisations including banks, private equity firms and financial services companies for these two firms.
These are the first few subsidiaries the company has placed on the block in a bid to repay the debt of over Rs 95,000 crore.
On December 3, the Mumbai bench of National Company Law Tribunal (NCLT) will hear the case on IL&FS Group.
The newly constituted Board of IL&FS, headed by prominent banker Uday Kotak, had approached the NCLT and had also submitted to the Ministry of Corporate Affairs and NCLT a report on the progress and the way forward. The report mentions that certain assets would be divested with an objective to resolve the ongoing financial crisis within the group.
Meanwhile, the group continues to default in making payments on the principal amount as well as interest on various instruments like commercial papers, deposits and non-convertible debentures.
SUN SETTING ON GROUP
- Rs 95,000 cr – Debt of the IL&FS group
- 977.5 mw – Wind power assets have been put up for sale, of which 104 mw are under-construction
- 300 mw – Solar assets that will be sold
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 "Renewable energy")
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