NEW DELHI: as part of its green energy program, Gail (India) Ltd. plans to bid for 400 megawatt (MW) capacity with Bharat Heavy Electricals Ltd (Bhel) in a state-owned Solar Energy Corporation of India (Seci) tender, a senior company official said on Wednesday.
Given its focus on building a clean energy portfolio, in addition to participating in tenders, Gail is also looking to acquire solar projects from private companies, said Manoj Jain, president and director. General of Gail.
âWe are looking at several areas,â Jain said.
This comes against the backdrop of a shift in the global energy architecture, with India at the center of future growth plans for oil majors and state-owned companies moving towards solar and wind power.
Jain said that while one of the ways to grow was to bid, the other was to go down an inorganic growth path, with Gail looking for “big and small” private companies to acquire assets. .
Mint previously reported on Gail’s proposed plans for a combination with ExxonMobil to set up a green energy platform in India. India is leading the world’s largest clean energy program to reach 175 GW of renewable capacity, including 100 GW of solar power and 60 GW of wind power by 2022.
Previously, Infrastructure Leasing and Financial Services Ltd (IL&FS) had agreed to sell its 874 MW operational wind power portfolio to the state gas company for â¹4,800 crores. The deal was dropped with the Japanese company Orix Corp., listed on the NYSE, acquiring these assets from bankrupt IL & FS and adding them to the portfolio of Hyderabad-based Greenko after investing $ 980 million in Greenko Energy Holdings. .
Oil majors have invested in India’s green economy as the conventional hydrocarbon space suffers technological disruption. For example, the French group Total invested $ 2.5 billion to acquire a 50% stake in the 2.35 GW operating solar assets of Adani Green Energy Ltd (AGEL) led by Gautam Adani and a stake of 20% in AGEL. In addition, Malaysian state oil and gas company Petroliam Nasional Bhd or Petronas has acquired Amplus Energy Solutions Pvt. Ltd, one of India’s largest rooftop solar power producers.
Gail has entered into a pact with Bhel “for cooperation in the development of solar energy projects”, in which the first will be the developer of the project and the second the contractor in engineering, procurement, construction and project management.
The deal-making in the Indian clean energy space has remained strong despite the global turmoil caused by the covid-19 pandemic, as the global energy landscape evolves towards environmental, social and governance (ESG) investments.
In another development, Gail submitted a proposal to the Department of Oil and Natural Gas for an Infrastructure Investment Trust (InvIT) for two of its pipelines. The plan is part of the government’s brownfield asset monetization strategy, with the InvIT channel being used as an alternative fundraising channel for SOEs to manage their financing needs without having to depend on government support.
InvITs are trusts that manage income-generating infrastructure assets, typically providing investors with a steady return and a liquid method of investing in infrastructure projects.
While declining to name the pipeline projects, Jain said Gail wanted to test the market through these two pipelines.
Meanwhile, Gail said her net profit for the fourth quarter ended in March fell to â¹1,908 crores â¹3,018.2 crore in the period of one year ago. The turnover was at â¹15,472 crore in the quarter. The PSU had reported a net profit of â¹4,890 crore for 2020-21 on a turnover of â¹56,529 crores.
âThe petrochemical activity showed better performance with more than 100% capacity utilization. Sales rose 18% to 871 TMT, the petrochemical plant recorded the highest production on record with 813 TMT, “the PSU said in a statement.
GAIL shares fell 3.34% on BSE on Wednesday to close at Rs 162.20, while the benchmark Sensex was down 0.64%.
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