Kotak Mahindra, EIB to Invest in India’s SolarArise

Funds managed by the European Investment Bank and Kotak Mahindra Group will invest about 2 billion rupees ($33 million) in clean-energy developer SolarArise India Projects Pvt.

The financing by Kotak’s Core Infrastructure India Fund and the EIB’s Global Energy Efficiency and Renewable Energy Fund will allow SolarArise to proceed with plans for 250 megawatts of projects in India, Anil Nayar, one of the company’s three founders, said by phone today. SolarArise is in talks to raise an additional 4 billion rupees over the next six months from other investors, including pension funds, he said.

“We’re looking to bring long-term capital to projects, not investors who want to flip a project in two years,” Nayar said. Solar plants are increasingly attractive to such investors because they generate steady cash flows and present little risk, he said.

SolarArise is evaluating plants in Gujarat and Rajasthan states for potential acquisitions and is also preparing to bid for new projects in government auctions, Nayar said.

Nayar and his co-founders, James Abraham and Tanya Singhal, were all previously employed by SunBorne Energy Holdings LLC, one of India’s earliest developers of utility-scale solar projects backed by billionaire Vinod Khosla.

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