BP sells its wind power business in India for $95 million
16 Sep 2009
BP Energy India Private Limited, a part of BP India, has sold its wind power business in India for about Rs462.2 crore (approximately $95 million), comprising a cash consideration of Rs177.9 crore (approx $37 million) and net debt assumed by the purchaser of Rs284.3 crore (approx $58 million).
BP Energy India Private Limited, which owns and operates three wind farms in India with a total generating capacity of around 100 megawatts (MW), said the transaction was completed today.
These include a 40MW capacity farm at Dhule, Maharashtra, which began operations in the third quarter of 2007; a 36.3MW farm at Bharmasagara and a 23.1MW farm at Telagi, both in Karnataka, commissioned in the fourth quarter of 2008 and the first quarter of 2009, respectively
Green Infra Limited is an independent power producer owned by funds managed by leading infrastructure-focused private equity company, IDFC Private Equity.
BP already has major business activities in India, with a total of over 1,500 staff in the country, and the group continues to actively explore new opportunities and long-term material growth options for all its Indian businesses.
Castrol India is the market-leading supplier of automotive and industrial lubricants in the country; BP is evaluating a coal-bed methane project in West Bengal and was awarded a deepwater exploration block in the Krishna-Godavari basin off the east coast of India in late 2008; and the Tata BP Solar joint venture is a leading manufacturer and supplier of photovoltaic power systems.
Today's sale has no impact on these businesses, the company said in its release.
BP is concentrating its global wind development activities on the portfolio of onshore wind development projects and opportunities that it had built up across the US. Over the past three years, BP has built a wind business in the US with interests in over 1,000MW of installed gross generating capacity and more than 1,000MW gross capacity at an advanced stage of development. In total, BP's US wind energy portfolio contains almost 100 projects, with a total potential generating capacity of up to 20,000MW.