Axis Private Equity, a division of the Indian private bank, has invested INR540m ($11.4m) in Shalivahana Green Energy Limited (SGEL), a renewables company which focuses on the biomass and small hydro power projects. The firm made the investment alongside IL&FS Financial Services, which together have committed INR900m ($18.9m).
SGEL has four projects with a combined capacity of 35MW. SGEL will reportedly be able to expand its capacity to 250MW with this fresh capital injection by developing further projects throughout India.
Alok Gupta, managing director and CEO, Axis PE, said, “Over 60 per cent of India’s generation capacity is from thermal sources whereas renewable energy sources (excluding hydro projects above 25 MW) account for a mere 9 per cent.” The company hence feels that investing in Shalivahana Green Energy Limited is a good bet.