Ruia-family promoted Essar Group is in talks with foreign investors to raise equity capital of up to $150 million in the first round to fund its ambitious green energy plans, housed under Essar Renewables, people aware of the development told Moneycontrol, with plans to tap foreign capital in the future as well.
Essar Group’s businesses once spanned across oil & gas, power, telecom and steel, sees the renewable space as a key area of growth, and is engaged in advanced talks with climate-focused investors from the Scandinavian region, among others, people cited above said.
The plan is to raise around $125-150 million in the first tranche, to support near term business needs, one of the sources said. The group is targetting investors with deep pockets, who can continue committing significant amount of capital for future requirements of its green energy business.
“As a group we do not comment on any financial or transaction related matters,” an Essar Group spokesperson said in an email response to Moneycontrol's query.
Essar Renewables
Essar Renewables was established in 2021 to lead the group’s push into solar, wind and battery energy storage solutions in India, with focus on utility-scale renewable energy (RE) capacity and supporting the transition to clean mobility and decarbonisation.
The group has plans to develop over 8 GW of green energy assets by 2030.
Future Green Energy Plans
Essar Renewables has set an ambitious target of surpassing 8 GW of renewable capacity over the next five years. It has begun green energy projects with a 90 MW photovoltaic solar plant in Dhatia in Madhya Pradesh.
Earlier this year, Essar Renewables had signed a memorandum of understanding (MoU) with the Government of Maharashtra to develop two GW of renewable energy capacity at an estimated investment of Rs 8,000 crore, primarily for green mobility and electric truck charging ecosystems. The project is scheduled to commence in fiscal 2026-27.
In a more recent MoU with the Government of Andhra Pradesh, Essar has agreed to develop 4 GW of renewable energy projects integrated with battery energy storage systems (BESS), backed by a proposed investment of Rs 20,000 crore.
It has also signed a MoU with Gujarat to invest Rs 20,000 crore for a 4 GW renewable energy capacity across solar, wind and battery storage in Kutch, Jamnagar and Dwarka districts.
As India’s aims to create 500 GW worth of installed green capacity by 2030, the renewable sector has been attracting investments from both foreign investors and Indian conglomerates such as Tata, Adani, JSW and Reliance Industries, among others.
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