IFC to lend $19M to PE-backed NSL Renewable Power’s wind power project

International Finance Corporation (IFC) has committed up to $19 million in debt finance to NSL Wind Power Company (Satara) Private Limited for a wind power project in Maharashtra. NSL Wind Power is a subsidiary of NSL Renewable Power Private Limited, a privately held firm backed by private equity firm FE Clean Energy and IFC.

NSL Wind Power is setting up a wind power project of 75 MW in Chilarwadi village of Man Tehsil, Satara in Maharashtra. The project will be implemented in two phases, with 25.5 MW to be implemented in the first phase. Construction period for each phase is expected to be six months from start of construction.

The project involves supply, erection, testing, commissioning, operation and maintenance of 50 wind turbines, with a unit generating capacity of 1.5MW to be supplied by ReGen under a supply, erection and commissioning contract with NSL Wind Power. Further, ReGen is also the O&M operator of the project. ReGen Powertech, a group firm which is into wind turbine manufacturing, is backed by Everstone Capital.

The total proposed project cost is estimated at $ 93 million, of which a fifth will come from the loan from IFC.

NSL Renewable Power is a subsidiary of NSL Group established for implementation of renewable power projects across the country. NSL Group owns 73 per cent in NSL Renewable Power, while 17.4 per cent is held by FE Clean Energy and 9.3 per cent by IFC.

In July 2011, clean energy-focused PE fund FE Clean Energy Group said it is investing  $40 million in NSL Renewable Power. FE Clean’s other investments in India include high efficiency street lighting firm Elpro Energy Dimension and hydel power-focused Bhilwara Energy (another co-investment with IFC).

The NSL Group is promoted by Prabhakar Rao, with interests in seeds, cotton, power, textiles, sugar and infrastructure. NSL Renewable Power, which was demerged from the group’s flagship Nuziveedu Seeds Ltd, plans to build a capacity of 1,000 MW by 2015. Nuziveedu Seeds, the largest seed company in India, is backed by private equity major Blackstone.

(Edited by Prem Udayabhanu)

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