IL&FS may merge wind energy biz with PE-backed Orient Green Power

Orient Green Power Company Limited (OGPL) is reportedly in discussions with IL&FS Wind Energy for a potential merger of the wind energy generation businesses of both entities. The merged entity will have 1.2 GW of operating wind capacity and will be by far the largest listed renewable energy company in India. IL&FS will have a larger stake as its wind energy generation capacity and projects in the pipeline are higher. OGPL is currently in the process of demerging its wind and biomass entities into two separate companies – OGPL (Wind) and Biobijlee Green Power (Biomass). Following the demerger, OGPL will have an operating wind capacity of 425 MW in 2016-17 with an additional 43 MW under construction, which will augment the capacity of the combined entity in 2017-18. IL&FS Wind has an operating capacity of 775 MW in 2016-17. It is developing an additional 228 MW, which the merged entity will be in a position to utilise. Both companies have entered into a non-binding agreement with an exclusivity period of 90 days.