Green power project loans of Rs 2,600 crore are secured by the KKR-Vedanta JV

24 Aug 2023 , 02:10 PM

According to news reports, a KKR and Vedanta JV has secured loans totaling Rs 2,600 crores to fund new green power projects that are being developed to satisfy the captive energy consumption demands of Vedanta group enterprises.

According to the reports, 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 crores.

According to the reports, the projects are being built to suit Balco’s captive consumption needs. When approached, a KKR spokeswoman indicated they would not comment on market rumors.

Serentica is now engaging with a varied group of domestic and foreign lenders to get financial closure as part of its ambition to create 4000 MW of renewable installations. However, we are unable to comment on any particular transaction, according to a Serentica Renewables representative.

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.

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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