Japanese financial services company Orix Corporation has picked up a 49 per cent stake in the wind energy business of Infrastructure Leasing & Financial Services Ltd, the Indian firm said in a statement on Wednesday.
IL&FS didn’t disclose any financial details of the deal.
The company has total wind energy capacity of 1,004 MW, of which 775 MW is operational and the remaining is under construction.
Under the deal, the two companies also plan to implement 2,000 MW of solar power projects in India.
ORIX, which has been a shareholder in IL&FS since 1993, held a 23.54 per cent stake in the firm as of July 2015, according to the Indian company’s website.
Makoto Inoue, president and CEO of ORIX Corp, said that the deal will diversify its portfolio in a fast-growing country such as India.
ORIX is one of the largest corporate houses in the Japanese solar power generation sector with a portfolio of one gigawatt.
IL&FS chairman Ravi Parthasarathy said the deal will help the company execute its development pipeline of an additional 1,000 MW in wind energy assets.
India’s renewable energy sector—especially wind and solar power—has attracted a clutch of financial and strategic investors, lured by opportunities as the government has set ambitious targets to cater to the rising demand for electricity.
Recently, Canadian institutional fund manager Caisse de dépôt et placement du Québec said it had decided to invest $150 million (over Rs 1,000 crore) in the renewable energy sector in India by 2020.
Last year, emerging markets-focused private equity firm Actis committed an investment of $230 million (Rs 1,400 crore then) to create an India renewable energy platform christened Ostro Energy.
SoftBank, the Japanese telecom and internet conglomerate, has formed a joint venture with India’s Bharti group and Taiwan’s Foxconn for renewable energy projects in the South Asian nation. The joint venture plans to invest $20 billion over a period of time.