International Finance Corporation (IFC) is looking to invest up to $40 million to acquire stake in a subsidiary of Gujarat Fluorochemicals Ltd that runs its wind power generation business. The investment arm of the World Bank will also provide a senior debt of $90 million to INOX Renewables Ltd, part of the $2 billion INOX Group.
Last month, Gujarat Fluorochemicals said in a filing that it had transferred its wind energy business to INOX Renewables Ltd through a slump sale. Promoted by the Jain family, Gujarat Fluorochemicals is present in businesses like industrial gases, refrigerants and chemicals, among others.
If the deal materialises, it would probably be IFC’s largest equity investment in India’s renewable energy sector. IFC has invested in more than half-a-dozen renewable energy firms in India since 2010, including NSL Energy, Simran Wind Project, Shalivahana Green Energy, Auro Mira Energy, Bhilwara Energy, Azure Power and Sapphire Industrial Infrastructures.
INOX Renewables’ operational assets include wind farms in Tamil Nadu, Maharashtra and Gujarat, generating around 120 MW. It is also planning to build a wind energy capacity of 3000 MW by 2017, with most of the projects expected to come up in Rajasthan and Gujarat. The company, currently a 99 per cent subsidiary of Gujarat Fluorochemicals, is looking to invest $480 million by 2013 to add 400 MW to its capacity. First of these projects will feature a 300 MW wind farm at Dangri in Rajasthan.
Inox Group, through its group company Inox Wind, is also involved in manufacturing wind turbines and its key components.