French
government-owned power utility Electricite de France SA (EDF) is planning to
buy stake of GMR's hydropower project in Nepal.
The EDF is
currently in talks with Bangalore-based infrastructure conglomerate GMR Group
to acquire a stake in 900-megawatt (MW) Upper Karnali hydropower project,
according to the French company that confirmed EDF's interest in acquiring stake
in the hydel project.
The GMR will
still be lead investor in the hydropower project as the EDF will have less than
51 per cent stake.
Though the
value of the possible deal is not confirmed, the EDF’s interest in the Indian
energy sector has been reflected by its earlier investment in ACME Solar Energy.
EDF’s
renewable energy arm and EREN, another French company, plans to invest a total
of Rs 8.80
billion in New
Delhi-based ACME Solar to set up solar power plants in India.
As the GMR
Group has previously articulated its 'asset light, asset right' policy to 'develop,
build, create value, divest and reinvest', the deal looks possible, the company
added.
The group
has sold several of its power, road and airport projects. GMR has 15 power
generation projects, of which eight are operational and seven are being built. It
also has nine road projects, of which seven are operational.
GMR Infrastructure had a total stand-alone debt of Rs 6.52 billion. The group’s consolidated debt stands
at 642.22 billion as of September 30.
GMR
Infrastructure’s loss widened to Rs 7.05 billion in the quarter that ended in December
compared with a loss of Rs 3.47 billion a year ago and Rs 6.28
billion in the
preceding quarter.
GMR Group today
said that it had sold a 74 per cent stake in GMR Ulundurpet Expressways to
India Infrastructure Fund of IDFC in a deal that releases capital
to the tune of Rs 3.16 billion and reduces debt on its books by Rs 7.20 billion.
As executing
a hydropower project is a time-consuming, costly and tedious process that includes
a thorough survey and investigation, preparation of a detailed project report,
relocation and resettlement of the affected population and infrastructure development,
the GMR changed its policy to 'asset light, asset right'.
A consortium
comprising GMR Energy and Italian-Thai Development Public Company (ITD) is
developing the 900-MW Upper Karnali hydropower project on Karnali river on
build, own, operate and transfer (BOOT) model.
While the country is
suffering 12 hours scheduled load shedding everyday, most of the investors,
mostly Indian investors, have been interested in developing hydropower, also due
to its huge untapped potential, but prolonged political transition has delayed
the projects.
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