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Actis-backed Ostro Energy to invest $425 million in Andhra Pradesh

Business Standard:  February 08, 2016

Chennai: Ostro Energy Private Limited, a renewable energy platform backed by PE firm Actis, plans to implement projects worth $425 million in Andhra Pradesh. 

The company will set up two wind farms with a total capacity of 197.4 megawatt (MW) through its two subsidiaries — Ostro Andhra Wind Private Limited and Ostro AP Wind Private Limited. The investment will also be backed by International Finance Corporation (IFC).

The estimated cost of the project is likely to be around $246 million. The proposed IFC investment consists of an IFC 'A' Loan of up to Rs 400 crore (around $62 million) and mobilisation of up to Rs 800 crore (around $123 million), according to IFC's disclosure.

This will be a Greenfield project located in Ramagiri, Kambadur and Kananganapalle Mandal of Anantapur District in Andhra Pradesh.

The companies plan to enter into a turnkey contract with Suzlon Energy Limited for acquisition of land, supply of wind turbine generators, erection and commissioning for the project.

The off taker for the project will be Southern Power Distribution Company of Andhra Pradesh Limited, a state-owned utility.

Ostro has about 76MW capacity under operation in Rajasthan and another 325 MW of projects are under construction in Rajasthan, Madhya Pradesh and Andhra Pradesh.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.