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India’s leading renewables financier to invest $44m in wind power

IDFC will invest in Green Infra over next six months joining Goldman Sachs in adding to India’s wind energy holdings

On the up: IDFC is increasing its investment in Indian wind power

India's biggest financier of clean-energy projects is to invest around INR 2.5bn (USD 44m) in wind power development in the BRIC country over the next six months. Business IDFC's alternative assets arm will invest in its Green Infra unit, according to reports, joining Goldman Sachs Group in adding to holdings in wind energy across the nation.

This will boost the company's investment in Green Infra to INR 12bn to help the unit fund acquisitions before a planned initial public offering, Bloomberg reports.

Goldman Sachs will raise its investment in India's ReNew Wind Power Pvt. by USD 135m to USD 385m. Wind power producers in India are buying smaller companies and consolidating in an effort to amass larger portfolios that generate cheaper power.

"There are excellent opportunities in the market for companies with the capital," Raja Parthasarathy, partner at IDFC Alternatives, said. The additional funding will allow Green

Infra to expand faster by buying already operating wind and possibly solar assets, he said.

"You will see us a lot more active on acquisitions of operating assets," he added.

Goldman Sachs agreed to acquire a majority stake in ReNew Wind for INR 10bn in September 2011. The wind producer plans to have 1,000MW of generation capacity by 2015, the companies said, according to Bloomberg.

New Delhi-based Green Infra, a renewable-energy developer set up by IDFC in 2008, will consider an IPO once it has increased capacity, Parthasarathy said.

"To get to the public market, Green Infra needs to be of a size and scale that will allow for a successful listing," he said. "That should be in about 18 months as the company raises operating capacity to 500MW from 320MW currently.

IDFC has invested INR 39bn in clean-energy companies, more than the state-backed Indian Renewable Energy Development Agency. This makes it the industry's biggest funder, according to IDFC.

The news from IDFC follows other BRIC financers investing in renewable energy, including biofuel development. Earlier this month, it was announced that Brazil will invest BRL 6.1bn (USD 2.85 billion) to fund biofuel and renewable chemical technology research.