The Hindu Business Line : YES Bank is strategic adviser to Windlab

Mumbai, Aug. 4 Windlab Systems of Australia has appointed YES Bank as exclusive financial and strategic advisor for developing wind projects in India. The bank will identify joint venture partners for the company in order to set up wind energy projects.

Talking to reporters at a press briefing on Monday, Mr Somak Ghosh, Group President (Corporate Finance and Development Banking), YES Bank, said that over next 18 months the bank has a target of creating four joint ventures, which could bring in an investment of Rs 1,000 crore. The bank could earn about Rs 2 crore as advisory fee from the transactions, he said.

Key criteria

Mr Ghosh said that one of the key qualifying criteria for selection of domestic partners would be their ability to procure wind sites and handle land acquisition problems, he said.

He said that the decision to lend to wind projects would be independent of the current agreement. But since the bank had identified the projects, it will in a better position to understand the financial risks involved in lending. The bank will positively consider such projects, he said.

Windlab Systems will also offer atmospheric modelling systems used globally to locate and develop wind energy sites. The bank will help the company understand the wind energy market in India, devise the entry strategy, and also ensure financial closure of the projects.

Mr Ghosh said “This relationship with Windlab is another step forward in our commitment towards sustainability. Due to increasing environmental concerns and supply side constraints of conventional sources of energy, YES Bank believes that power generation via renewable sources of energy will lead the way forward for the Indian Energy sector" he said.

He said that Windlab would explore new areas for setting up wind projects and fine-tune the existing farm for the better placement of the turbines.

Carbon credits

Mr Ghosh said that the bank could also provide advisory services to Windlab for earning carbon credit from the wind projects but it would be a separate arrangement. “There is no commitment from Windlab that that bank will be an advisor on carbon credits projects as well. But they will give us preferential treatment as and when they develop the projects, he said.

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