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Sembcorp, Actis bet big money on government's green energy plan

Ahead of the government's initiative to invite more than $160 billion investment in India's Renewable Energy programme through RE-INVEST summit later this week, Sembcorp Industries is buying IDFC Alternatives's stake in Green Infra for Rs 1,051 crore

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Ahead of the government's initiative to invite more than $160 billion investment in India's Renewable Energy programme through RE-INVEST summit later this week, Sembcorp Industries is buying IDFC Alternatives's stake in Green Infra for Rs 1,051 crore

IDFC Alternatives has entered into definitive agreements to sell its private equity fund's controlling stake in Green Infra, valuing the latter at over Rs 4,400 crore. The transaction will result in IDFC Private Equity Fund II exiting completely and IDFC PE Fund III continuing to hold a significant minority stake in the Green Infra with a secured path to exit, including through an IPO. The investment also marks Sembcorp Group's entry into the fast growing renewable energy sector in India.

Actis LLP, a British private-equity firm, will invest $230 million in a new clean-energy unit in India to tap the country's potential for renewables.

Ostro Energy aims to install 800 megawatts of new capacity across several Indian states by 2019, Actis said in a statement. The Delhi-based unit is already building its initial wind power plant, a 50.4-megawatt facility at Tejuva in Rajasthan. Most of its projects will be wind farms, it said.

"Actis sees significant potential in the Indian renewable sector." said Sanjiv Aggarwal, Actis's head of energy investments in Asia. "We believe that Ostro will become a leading wind provider in this market." India's new government is planning to boost renewable energy as a way to reduce greenhouse gas pollution. It's considering clean-energy targets, expanding an existing programme to reach 100 gigawatts of solar capacity by 2022.

Ostro is the fifth energy company Actis has established in developing countries since 2010, following units in Central America, Mexico, Chile and Brazil that focus on renewables. The London-based investor in emerging markets sold its African energy unit, Globeleq Africa, last week to the U.K.'s and Norway's development finance institutions.

—With Agencies

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