NSL Renewable Power Pvt Ltd (NRPPL), part of the Hyderabad-based NSL Group, has raised $5 million (Rs 28 crore) from International Finance Corporation (IFC) through compulsorily convertible debentures (CCDs) to support the development of wind and hydro power projects and expand access to clean energy.
This second round of funding follows a $20 million investment that IFC made in the company in 2011.
The money raised from IFC will enable NRPPL to double its power generation capacity over the next 18 months.
“IFC’s financial support and expertise in the renewable energy sector will have a strong demonstration effect and encourage other investors to invest in NSL Renewable Power. Its strategic partnership will help the company transition from a medium-sized market participant to a domestic market leader and over time, become an investor and developer in other emerging markets,” said M Prabhakar Rao, chairman of the NSL Group.
“The investment will help address power scarcity and contribute to climate change mitigation. IFC’s support to NSL Renewable Power will also help the company benchmark its environment and social standards to global best practices,” said Thomas Davenport, IFC director for South Asia.
This is the third time that the renewable energy firm is raising money since January this year. Most recently, the firm raised $30 million from Asian Development Bank and prior to that, it secured $60 million from investors including Germany’s DEG and France’s Proparco. The investors who participated in that round also included South Korea’s private equity firm Asia Clean Energy and GS Power Co Ltd, in addition to existing investors FE Global Clean Energy Corp and International Finance Corporation (IFC).
NRPPL, which was demerged from the group’s flagship Nuziveedu Seeds Ltd, plans to build a capacity of 1,000 MW by 2016. The firm develops and operates renewable energy projects using biomass, wind, hydro and solar technologies.
Nuziveedu Seeds, the largest seed company in India with a turnover of more than Rs 1,300 crore, is backed by the private equity major Blackstone.
As of 2012 end, NRPPL had 185 MW of operational projects (including hydro, wind, biomass and solar power projects), with an additional 336 MW of renewable power under construction or in advanced development.
(Edited by Sanghamitra Mandal)