SEPTEMBER 20238TOP STORIESSTERLING & WILSON RENEWABLE AIMS TO RAISE 1,500 CRORE IN EQUITYANDHRA PRADESH SEEKS A $15 BILLION OPPORTUNITY FOR GREEN HYDROGEN INVESTMENTSterling and Wilson Renewable Energy (SWREL), a company promoted by the Shapoorji Pallonji Group, is thinking about selling equity shares to raise up to Rs. 1,500 crore to pay off debt due this fiscal year. According to the individuals cited above, one of the options being considered is selling shares to investors using the qualified institution placement (QIP) method.Payment liabilities for the power generation company, in which a Reliance Industries-affiliated subsidiary acquired 40 percent interest in 2022, totaled 1,000 crore by December 2023. The decision to raise money was made shortly after two bank guarantees (BG) totaling 390 crore rupees were invoked by clients from abroad who claimed that a project carried out by the company's overseas subsidiaries Wilson International Solar FZCO and Sterling had been improperly executed. Sterling contends that the bank guarantees were incorrectly used and has taken legal action against the two clients. In order to fulfil its obligation to pay 390 crore by the end of October 2023, SWREL extended corporate guarantees in favour of these BGs, which were issued by Emirates National Bank of Dubai. The New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP), the state's green hydrogen market represents a $15 billion investment opportunity. Aiming to create 500 KTPA (kilotons per annum) of green hydrogen by 2030, Andhra Pradesh could potentially. About 70 percent of this investment is anticipated to go towards building out the infrastructure for renewable energy sources, with the remaining funds going towards increasing the capacity of the electrolyzers. NREDCAP undertook this project with assistance from the Foreign, Commonwealth, and Development Office. The managing director of NREDCAP, S Ramana Reddy, stressed that Andhra Pradesh now has a domestic hydrogen demand of 400 KTPA, or about 8 percent of India's industrial hydrogen consumption. The expected Compound Annual Growth Rate (CAGR) (for this demand) is 3 percent.
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