IDFC Private Equity has denied a report saying that it is close to buying the wind power assets of BP in India for Rs 650 crore. The Economic Times today reported that IDFC PE will buy the assets by paying Rs 350 crore in the first tranche. Luis Miranda, President and CEO of IDFC PE, said in an emailed response to VCCircle that "the report is wrong".

BP, the third largest global energy company in the world, has 40 mw assets in Maharashtra and 60 mw assets in Karnataka. BP feels that its should focus on markets like US where it has an opportunity to develop a 20,000 mw portfolio, the ET report quotes BP India spokesperson

saying. "In India, we are not exploring any new wind development options and are in the process of reviewing existing development positions. There are many potential options for the Indian wind

business, one of which includes divestment,” added the spokesperson.

IDFC Private Equity, which has raised more than $1.3 billion across three funds, has recently set up a 100% subsidiary called Green Infra. This company aims to build a renewable energy portfolio comprising wind, solar, biomass and small hydel projects. This firm has already set up wind farm in Tamil Nadu and IDFC PE has committed Rs 360 crore to this venture from its $700 million third fund.

A recent study by the Global Wind Energy Council and the Indian Wind Turbine Manufacturers Association said that wind power can meet over 24% of India's energy needs by 2030. The Indian government has also set a target of 10% by 2012, and of 20% by 2020, of power to be

derived from renewable energy sources.

Several firms are eyeing this opportunity. Earlier this month Indian Energy, a company which operates wind power assets across the country, was listed on London's AIM raising Rs 78 crore. Other firms like Orient Green Power and Ghodawat Energy  are also looking at such projects. DLF's wind energy business, which has also been put on block recently, has also attracted several European suitors.

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