Sources say that a JV of green arms from India's NTPC and ONGC has bid $650 mln for Ayana Renewable.

Two people who were involved in the deal said that a joint venture between India's NTPC Green Energy, and ONGC Green Energy was the highest bidder on Ayana Renewable Power. They bid $650 million.

People said that the venture had outbid JSW Energy to secure the renewable energy company backed by the quasi-sovereign fund National Investment and Infrastructure Fund.

Ayana Renewable Power is owned by NIIF (British International Investment Fund), Green Growth Equity Fund and British International Investment Fund. It operates solar and wind power plants in India that generate 1,600 megawatts. Another 2,500 megawatts of such projects are under construction.

One of the sources stated that "NTPC Green Energy, ONGC Green Energy and a joint venture have decided jointly to acquire 100% of Ayana Renewable Power by way of a joint-venture company after due diligence."

NTPC, ONGC and Ayana Renewable Power didn't immediately respond to questions sent by.

JSW Group's spokesperson declined to make any comment.

Source: NTPC Green Energy & ONGC Green Energy have signed an agreement to form a joint venture on an equal basis in February of this year.

India's large power producers are investing heavily in renewable energy and have made pledges to increase their green energy capacity. India has committed to adding 500 gigawatts to clean energy by 2030 in order to reduce carbon dioxide emissions.

NTPC Green Energy is an arm of the state-owned company NTPC. It is aiming to raise $10.8 billion through an IPO next week. This will be India's largest IPO of this year.

The proceeds will be used to pay off the debt of its unit NTPC Renewable Energy.

ONGC Green Energy is expected to be listed in the current fiscal year. (Reporting and editing by Christopher Cushing, Stephen Coates, and Sarita Chaganti)

(source: Reuters)