Mahindra Group sees light at the end of renewables tunnel

The success of a less-used funding mechanism has given the conglomerate a means to monetize its renewable energy assets and expand. Will its unorthodox approach work in the long run?

The Mahindra Group is back for a second shot at India’s renewable energy market.

Last month, an infrastructure investment trust, or InvIT, co-sponsored by the group and Canada’s Ontario Teachers’ Pension Plan Board listed on the NSE. The InvIT—which works like a mutual fund, enabling individuals and investment firms to directly invest in infrastructure projects—ended up raising Rs 2,262 crore from marquee investors like the Asian Infrastructure Investment Bank and, in the process, became the largest listed renewable energy InvIT in India.

The group’s plan is simple. The investment trust will own 1.5 gigawatts of operational renewable energy assets developed …

Author

Azman Usmani

Azman writes on climate change, ESG, and how a warming world impacts businesses and people alike. Prior to The Morning Context, he led climate coverage at BloombergQuint, where he started his career as a desk writer.

Writer

azman@mailtmc.com

Mumbai