The renewable energy sector is on a paradigm shift towards embracing full sustainability. Joining this fight is Indian-based KKR, a private equity group currently working towards a deal with InvIT, a trust operation renewable energy venture, to generate energy for households enabling them to operate on clean energy provisions. 

InvIT controls the construction projects taking advantage of revenues that provide investors daily returns and an easy investment method into infrastructure-based projects. Moreover, the firms still maintain their option of publicly trading on bonds or remaining private according to choice for several owners.

The KKR is working on setting up functional InvIT storage for the sustainable properties it will acquire. The company plans to move its assets into the InvIT program to gather a large number of assets. After that, it plans to sell the assets based on corresponding InvIT packages using in-kind currencies. Sellers interested in buying InvIT assets will buy with specialized exchange currency like pension funds, sovereign wealth funds, and insurance covers working to form long-term working relationships. 

Similarly, Axis Capital Investment Bank seeks to become the sole advisor for the KKR on implementing the InvIT structure. However, there is no confirmation of the reports from Mint. Moreover, the KKR did not address Mint’s questions.

The move would be India’s second KKR-backed project that is supported by InvITs. According to records, the KKR spent around 2,000 crores in India Grid Trust in Singapore.

InvIT identified housing projects for electricity amplification systems. Both KKR and GIC have 60% shares in the InvIT program. Likewise, KKR is the certified financer for the InvIT programs. Although the IndiGrid or India Grid Trust began with transmission assets only, the InvITs program helped diversify IndiGrid and India Grid Trust into the solar-based renewable energy industry. 

IndiGrid is already signed in a 100% purchase deal with Fotowatio Green Ventures B.V. that started last month by buying two 50 megawatts solar plants for a value of 660 crores. IndiGrid has plans to buy solar energy assets together with KKR are other projects. InvIT also plans to buy solar assets as it settles its projects    

KKR announced its schedule to build a new system to handle its clean power assets in India, which it plans to name the Virescent Infrastructure. The concept holds 317 MW of solar-based assets paying over 1,500 crores from the Shapoorji Pallonji Group in Maharashtra and Tamil Nadu. 

KKR has already concluded binding negotiations that will allow the company to establish Its operations in three countries’ working on building solar plants. The company’s latest ventures would still come operational but remain part of Virescent’s planned network waiting to be ultimately integrated into the InvIT program.

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