Luthra and Luthra Law Offices advised the Indian Renewable Energy Development Agency (IREDA) on financing for two hydropower projects in the country worth INR11.5 billion (USD141 million).
IREDA lent INR7.5 billion to ReNew Jal Urja and the remaining INR4 billion to Hyderabad-based Pioneer Power Corporation and Pioneer Genco.
Partner Girish Rawat led the Luthra team working on the Pioneer project, which included senior associate Ashneet Chhabra, and associates Himanshi Bhadoria and Pranav Dwivedi.
“The firm played a key role in addressing the issues of all stakeholders for smooth closure of the transaction and worked round the clock, and successfully managed to ensure the disbursement of the facility to the satisfaction of all the parties,” Rawat told India Business Law Journal.
The team for the ReNew Jal Urja project was led by partner Purvi Dabbiru, senior associate Samarth Sharma and associate Shantanu Awasthi.
“Since we were the sole lenders’ counsel, we were extensively involved in drafting, reviewing, negotiating and finalising the financing documents until the first disbursement,” said Dabbiru.
She said the team had to structure the financing documents and the obligations of all the obligors in a manner that would provide flexibility to the power developer to sell power to a third party within the ReNew group, and also balance out the interests of the lender.
“Since the lenders were leveraging the cash flows of an operational hydropower project, while at the same time the shareholders were equally keen to protect their rights including from the perspective of dividends, we had to draft the financing documents in a manner so as to ensure that the same was achievable,” she added.
The ReNew Jal Urja project will be a 99 megawatt, comprising three units each of 33MW, run-of-the-river hydropower project in the Uttarakhand state, while the Pioneer project will be a 98MW, comprising four units each of 24.5MW, in Karnataka.
IREDA is engaged in promoting, developing and extending financial assistance for projects in new and renewable sources of energy and energy efficiency/conservation.