KKR-Vedanta JV Partner: Rs 2,600 Crore in Loans For Green Power Projects

CIOTechOutlook Team | Thursday, 24 August 2023, 02:44 IST

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KKR and Vedanta JV has secured loans totaling 2,600 crore to fund new green power projects that are being developed to satisfy the captive energy consumption demands of Vedanta group enterprises. According to the sources mentioned earlier, the JV known as Serentica Renewables, in which KKR has invested over $650 million so far, has secured a 19-year loan from Power Finance Corporation to build solar and wind projects in Karnataka.
 
These projects will have a 400 megawatt capacity for electricity generation with a total cost of about 3,500 crore. According to the sources, the projects are being built to suit Balco's captive consumption needs. When reached, a KKR spokeswoman indicated they would not comment on market rumors.
 
"As part of our strategy to develop 4000 MW of renewable installations, Serentica is currently working towards securing financial closure with a diverse group of domestic and international lenders. However, we cannot comment on any specific transaction", a spokesperson for Serentica Renewables said.
 
KKR and Vedanta have a 65:35 joint venture called Serentica Renewables, with the former controlling the majority of the company. The business is constructing renewable energy projects with a 1.5 gigawatt power generation capacity.
 
"In the medium-term, Serentica aims to install 5000MW of carbon-free generation capacity coupled with different storage technologies. Eventually, it aims to supply over 15 billion units of clean energy annually and displace 20 million tonnes of CO2 emissions", a description about the company on is website reads.
 
Nearly half of India's power demand comes from the commercial and industrial sector of electricity customers, on which the corporation is primarily focused.
 
Pratik Agarwal, managing director of Sterlite Power, represents Vedanta's ownership stake on the board of directors of Serentica Renewables. In March of last year, Serentica was established. In November of last year, KKR made its initial $400 million investment in the business. In May of this year, it made a second $250 million investment.
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