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Pan Global set to acquire 5.7MW hydropower plant in India

US firm Pan Global plans to acquire Regency Yamuna Energy which owns a 5.7MW hydropower plant in north India

Hydropower plant
Pan Global is to acquire India-based RYEL's 5.7MW hydropower plant in Uttarakhand

US-sustainable energy technology service provider Pan Global will acquire Indian firm Regency Yamuna Energy (RYEL), which owns a 5.7MW hydropower plant in Uttarakhand. Through its subsidiary Pan Asia Infratech, Pan Global will sign an agreement worth around USD 6m to acquire 100 per cent outstanding shares and convertible debt of RYEL in multiple tranches. 

The hydropower plant project is estimated to be 95 per cent complete and commercial operation is expected to commence during the fourth quarter of 2013.

Pan Global had deployed Tractebel Engineering, a technology consultant based in Belgium, for conducting final engineering due diligence on the 5.7MW hydropower plant. Tractebel identified a few construction deficiencies while conducting the due diligence study, which aimed to ensure the hydropower project achieves the highest professional engineering standards. RYEL has accepted the action plan recommended by Tractebel.

Pan Global announced earlier this month that the conclusions and recommendations of Tractebel's report support the company’s plan to move ahead with the staggered acquisition.

Pan Global said: "We are excited to have reached another step in developing our business. Execution of this definitive agreement stems from our commitment to establish ourselves in the green economy. We believe our capital structure, combined with current and potentially new investors and our professional team provides us with the tools to complete this acquisition and share the benefits with our stockholders for years to come."

The hydro news comes shortly after hydropower plant projects look set to build up in India this month. Reports in November suggested India’s National Hydroelectric Power Corporation (NHPC) may form a joint venture (JV) with hydro firms to develop 4,600MW hydropower projects in the BRIC country.