(LiveMint)
State-owned gas utility company GAIL (India) Ltd is considering acquiring all of the wind energy assets held by subsidiary of debt-laden Infrastructure Leasing and Financial Services (IL&FS), according to people familiar with the matter.
GAIL India is looking to buy 775 megawatts (MWs) of wind energy assets from IL&FS Energy Development Co., a unit of IL&FS, and has approached investment bankers to advise on a possible deal, the people said, asking not to be named as the talks are private. The discussions are at a preliminary stage and a decision to bid hasn’t been made, the people cited above said.
A deal will give India’s biggest gas utility is an opportunity to add to its existing renewable energy portfolio of 129 megawatts (MWs) 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. People aware of the matter said GAIL would not consider buying the entire wind energy assets of IL&FS unless offered at a steep discount.
