Shardul Amarchand Mangaldas & Co (SAM) advised REC India on an INR85.36 billion (USD1 billion) term loan to Greenko for the development and implementation of an pumped-storage project, along with evacuation infrastructure, in Karnataka state.
Partner Anurag Dwivedi, who was assisted by principal associate Prince Singh and associate Amitanshu Saxena, led the transaction team.
“Working on this landmark pumped-storage project transaction was both challenging and immensely rewarding,” Dwivedi told India Business Law Journal.
“The sheer scale of the deal — valued at approximately INR8,536 crores — meant that every aspect required meticulous attention to detail and a high degree of co-ordination among various stakeholders, both domestic and international.”
This transaction marks one of the largest loans in the Indian renewable energy sector, supporting a project with significant capacity of up to 1,600MW. Pumped-storage is a method of storing energy using two reservoirs at different elevations. When excess electricity is available it is pumped from a lower reservoir to an upper reservoir, effectively storing potential energy.
“One of the most distinctive aspects of this assignment was the novelty of pumped-storage projects in India, which is a relatively new phenomenon in the Indian infrastructure space,” said Dwivedi.
“Unlike more established renewable sectors such as solar and wind, the regulatory regime for pumped-storage projects has not fully matured in India. This required us to undertake a deep dive into the applicable legal framework, piecing together requirements from various authorities, including forest conservation, environmental clearances and water usage permissions. The process was further complicated when the project’s capacity was increased, necessitating additional government approvals.”
Acknowledging the role of Mauritian enterprises, he said, “The involvement of three Mauritius-based sponsor companies added a significant cross-border dimension to the transaction.”
Madun Gujadhur Chambers acted as Mauritian counsel to REC India, advising on corporate guarantees and holding company undertakings.
“We worked extensively with Mauritian counsel to ensure that the corporate guarantees and holding company undertakings would be enforceable and resilient to insolvency challenges in both jurisdictions,” Dwivedi said.
“This aspect of the deal provided valuable exposure to international legal co-ordination and the complexities of cross-border credit support.
“Another key learning experience was managing the refinancing of existing bridge notes. This involved detailed due diligence, ensuring compliance with all bond conditions and overseeing the release of security interests. Additionally, the unique nature of pumped-storage as both a generator and a storage asset required careful analysis of regulatory requirements for tariff approval. Navigating these issues deepened my understanding of the regulatory landscape and the importance of clear, well-structured agreements.
“Overall, working on this transaction was a significant professional milestone. It required a blend of technical legal skills, strategic thinking, and effective communication with a diverse group of stakeholders. The complexity and novelty of the project provided an unparalleled learning opportunity, and the successful closing of the deal was a testament to the value of thorough preparation, teamwork, and innovative problem-solving.”
Greenko’s in-house talent handled the company’s negotiations on the loan, with senior manager Fuzail Lateef leading the business team and senior general manager-legal Vidhu Kapila in charge of the legal team.
Greenko is one of the world’s leading energy transition and decarbonisation solutions companies, while REC India is a non-banking financial institution.
