GAIL to acquire wind assets of IL&FS

India's largest natural gas company GAIL has emerged as the frontrunner to acquire the stressed wind assets of the collapsed infrastructure financier IL&FS.

GAIL has offered Rs. 4,800 crore for IL&FS's 874 MW operational wind portfolio. According to news reports, GAIL emerged as the highest bidder for seven of IL&FS' operating wind power plants, totaling to a generation capacity of 874 MW at an average tariff of Rs. 5 per kilowatt hour.

These assets are held in a special purpose vehicles (SPVs) for the wind power portfolio. If the deal proceeds, it would fully pay back the SPV's debt of Rs. 3,700 crore. It will also be one of the first assets of the IL&FS to go under the hammer. The proceeds of the deal will be held in a trust for distribution to the stakeholders, according to the resolution framework.

Earlier on March 29, the company signed MoU with BHEL for cooperation in the development of solar-based power projects.

On Tuesday, the stock of GAIL India closed at Rs. 339.85 per share, down by Rs. 4.60 or 1.34 per cent on BSE.