The Abraaj Group and India-based Aditya Birla Group have set up a new 1-gigawatt (GW) renewable energy platform called Aditya Birla Renewables focused on developing solar power plants in India.
Abraaj will invest in the platform through one of its funds, while the Aditya Birla Group will invest through its Aditya Birla Nuvo division. Aditya Birla will own 51 percent of the platform, with Abraaj holding the remaining 49 percent.
“As the government has helped with the site selection and related regulatory approvals, we just need to come in and build, operate and manage the solar plants.”
Vettivetpillai said his firm pays particular attention to the payment schemes in the states where the investments are placed. “As a power operator, it is important for us that the state government can ensure the bills are paid on time,” he added.
Despite these factors, Vettivetpillai believes it is a good time to be part of the growth of the Indian renewable energy sector.
He commented: “Renewable energy is set for explosive growth thanks to technological advances, favourable policies and pricing structures that make it a competitive alternative to conventional power generation. We see significant opportunity in India, one of the world’s biggest energy consumption markets.”
Greenstone Energy Advisors, the Indian renewables-focused investment bank, advised on the partnership.