KKR and Vedanta JV has secured loans totaling 2,600 crore to fund new green power projects that are being developed to satisfy the captive energy consumption demands of Vedanta group enterprises. In order to develop solar and wind projects in Karnataka, the JV known as Serentica Renewables, in which KKR has so far invested over $650 million, has secured a 19-year loan from Power Finance Corporation.
These projects will have a 400 megawatt capacity for electricity generation with a total cost of about 3,500 crore. According to the sources, the projects are being built to suit Balco's captive consumption needs. When approached, a KKR spokeswoman indicated they would not comment on market rumours. 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.
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. "Serentica plans to install 5000MW of carbon-free generation capacity paired with various storage technologies in the medium term. According to the company's website, it eventually hopes to provide more than 15 billion clean energy units yearly and eliminate 20 million tonnes of CO2 emissions.
Nearly half of India's power demand comes from the commercial and industrial sector of electricity customers, on which the corporation is primarily focused. 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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