INDIA WIND GETS BIG BACKING, PLANS 5,000 MW

Caparo Energy raises $78.5 Million
22 June 2011 (Silicon India)

"Hyderabad-based [wind developer] Caparo Energy…has raised $78.5 million…through mezzanine financing [from] IDFC India Infrastructure Fund…Morgan Stanley was the sole advisor…The funding is mezzanine for a six-year term…The interest rate is around 14 percent. The company plans to raise another $33.5 million…The fund will be utilized to finance projects with a combined capacity of around 700 MW.

"Mezzanine financing is a hybrid of debt and equity financing that is mostly used to finance the expansion of companies…Ravi Kailas, CEO, Caparo Energy, said that this fund together with the second tranche…[will] put the company in a position to fund approximately 700 MW of projects, with no further equity dilution…"

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"Caparo Energy is listed on AiM, a market of the London Stock Exchange…[I]nvestors include some of the largest funds in the world such as Henderson, Eton Park, Capital International and Black Rock. The company seeks to…[build] a portfolio of wind power generating assets in the currently fragmented Indian Wind Energy Market…

"…[Caparo] intends to own a portfolio of wind farms with a target total installed capacity of 5,000 MW by the year 2017. It has entered into a binding partnership agreement with one of India's largest turbine producers, to receive 3,000 MW of grid-connected wind farms on a turnkey basis by March 2016 and is in advanced stages of negotiation to acquire land for 2,000 MW in various states."

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"…[Caparo] has a capacity of around 100 MW and has three projects in Rajasthan, Gujarat and Maharashtra. An additional 750 MW will be generated from projects in Gujarat (300 MW), Andhra Pradesh (100MW), Maharashtra (100MW), Rajasthan (75MW), Karnataka (100MW) and Tamil Nadu (75MW)…

"…The company's first project of 42 MW comprising 20 Suzlon S-88 2.1 MW wind turbine generators has begun operating in Tejwa, Rajasthan. Five WTGs, totaling 10.5 MW, are currently connected to the grid and the company expects a total of 42 MW to be fully connected by mid-July 2011. The second project is approaching its completion in Mahidad, Gujarat, which comprises 12 Suzlon S-88 2.1 MW WTGs, totaling 25.2 MW and expects that the 12 WTGs will be completed by mid-August 2011.The third project is in Maharashtra, which comprises of 16 Suzlon S-88 2.1 MW WTGs and totaling 33.6MW is expected to be completed by December…"