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Moumita Bakshi Chatterjee

New Delhi, Oct. 15 Greenko Mauritius is proposing to convert its subsidiary Balaji Biomass Power Pvt Ltd into an operating-cum-holding company, in order to make downstream investment of up to €80 million in the power sector in the next 2-3 years, particularly in renewable energy projects.

The company has approached the Foreign Investment Promotion Board (FIPB) for converting the operating company into an operating-cum-holding firm, sources said.

As per the policy, while the conversion requires FIPB approval, further downstream investment is subject to Press Note 9 of 1999.

Greenko Mauritius is a non-resident company incorporated in Mauritius and a wholly owned subsidiary of Greenko SA Luxembourg.

With a view to invest in the power sector with special emphasis on renewable energy projects, the company invested in Balaji Biomass Power by purchasing its shares from stakeholders to make it a 100 per cent subsidiary in 2006, under the automatic route.

The company also acquired equity holding in another two power generating companies in India in 2006-07 under the automatic route. This included equity acquisition of KMS Power Pvt Ltd of up to 100 per cent in March 2007; and Ravi Kiran Power Projects Pvt Ltd up to 46.33 per cent also in March. The shareholders of Ravi Kiran Power Projects have agreed to sell 100 per cent of their holding in the company to Greenko Mauritius, the sources said.

It is learnt that the Ministry of New and Renewable Energy has conveyed its ‘no-objection’ to the proposal by Greenko Mauritius through its subsidiary in August. The Ministry of Power has also pointed out that 100 per cent foreign equity participation is permissible on automatic approval without upper limit for projects in electrical generation, transmission, distribution and trading. The Ministry of Power has also conveyed its no-objection to the proposal, they added.

More Stories on : Outlook | Non-conventional Energy | Foreign Direct Investment

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