ADB Hydro Sector
Making it the first of its kind pact in the country, the NSL group has recently secured ADB's equity investment for renewable power generation segment and the deal is the first private partnership in India's hydropower sector. The investment agreement worth $30-mn between ADB and NSL's Renewable Power comes in the run up to the ADB's 46th annual meeting recently held in the NCR region. The company will use the investment proceeds to partially finance the construction of the 100-megawatt Tidong run-of-river hydropower project in Himachal Pradesh, and the 75-megawatt Chilarewadi wind project in Maharashtra. India will increasingly need renewable energy to drive its development and the private sector will play a central role in developing the renewable energy sector to help the country achieve green growth, ADB Vice President for Private Sector and Co-financing Operations Lakshmi Venkatachalam said. In fact, ADB's investment will help NSL reach its target of 1,000 MW of operational renewable energy assets by 2017. The bank is now a shareholder in NSL Group and has picked up equity for the first time and the option of increasing the stake is open to the bank as it would depend on the sector's performance, Deputy Director General (Private Sector Operations Department) ADB, Jo Yamagata said, explaining that NSL Renewable Power is the renewable energy vertical of NSL Group with 185 MW of installed capacity across wind, solar, bio-mass and hydro power and currently has over 200 MW wind and 150 MW hydro projects under construction.