PROPARCO, a French development financial institution, has made a $15 million equity investment in independent power producer Avaada Energy Private Limited. In April 2019, Avaada Energy had also secured financing of around Rs 10 billion in the form of equity infusion from the Asian Development Bank, German development bank – DEG, Dutch development finance company- FMO, and promoters’ equity. Meanwhile, PROPARCO has earlier also invested in renewable energy project developer Azure Power.
The story of Avaada Power began in 2016 when Welspun Renewable Energy, co-founded by Vineet Mittal and B.K. Goenka, sold its renewable energy portfolio of 1,140 MW to Tata Power Renewable Energy Limited for about Rs 92.5 billion. A part of the sale proceeds were used by the two founders to start a new venture, Avaada Power. Welspun’s engineering, procurement and construction business was also demerged and transferred to a subsidiary of Avaada.
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