Mahindra and the Ontario Teachers invest in Indian green energy

19 January 2024 17:43

GBI

Mumbai - Indian conglomerate Mahindra Group and the Ontario Teachers’ Pension Plan Board have sponsored a US$273 Million (Rs. 2262.8 Crore) fund called the Sustainable Energy Infra Trust, or SEIT, to hold assets in renewable energy projects.

A major Canadian public investor, the Ontario Teachers’ Pension Plan Board, and Mahindra Group, one of India’s largest companies, are pouring funding into green energy in India with the new Sustainable Energy Infra Trust, or SEIT.

SEIT now owns and operates renewable energy sources with a capacity of approximately 1.54 gigawatts of power, a January 15 press release explained.

“The Government of India has laid down ambitious targets to reduce the carbon intensity of the nation’s economy by 4 percent by the end of the decade and achieve net-zero carbon emissions by 2070,” said Mahindra Group Chief Executive and Managing Director Anish Shah. “The listing of SEIT is a testament to the Group’s ability to attract strong external investors.”

With the help of the Ontario Teachers, SEIT raised $165 million (Rs. 1365 Crore) in its initial offering. Portfolio company Mahindra Susten raised $108 million (Rs. 897.8 Crore) for the fund. Large foreign and Indian investors, including the Asian Infrastructure Investment Bank, subscribed to the offer.

The venture will grow. Mahindra Group and the Ontario Teachers’ had committed to spending as much as $368 million, (Rs. 3050 Crore) and $428 million, respectively, into Mahindra Susten and SEIT to expand Indian renewable energy at scale. Shah said he envisioned Mahindra Susten growing by 500 percent in the next five years, for example.

“We are proud…to contribute to India's renewable energy ambitions,” said Deb Hajara, managing director for infrastructure and natural resources at Ontario Teachers’ Pension Plan Board. “This milestone not only reinforces our commitment to invest globally in green and transition assets but also demonstrates the attractiveness of renewable energy investment opportunities in India.” ce/jd

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