In a statement on Sunday, debt-ridden IL&FS said, Japan-based Orix Corporation has expressed interest in buying out IL&FS Wind Energy. Orix already owns 49 percent stake in each of its seven operating wind power plants. It is now exercising its rights under its existing MoU (memorandum of understanding) with IL&FS group to buy remaining 51 percent.

The seven wind power plants, in the form of special purpose vehicles (SPVs) are spread across 12 states with a total generation capacity of 874 MW.

In November 2018, the group had initiated the process of the sale of controlling stake in the wind power plants as part of a sale of a number of assets held by it to reduce the significant amount of debt mounted. Expressions of interest were invited.

In April, government-owned GAIL (India) offered Rs 4,800 crore, emerging as the highest bidder to acquire 100 percent stake in IL&FS Wind Energy Limited, subject to consent from Orix. The offer was made with no hair cut to the debt of the SPVs, which is close to Rs 3,700 crore. Orix now matches the offer.

"The intent to buy 51 per cent stake is in exercise of Orix's right under the terms of an existing MoU wherein Orix can match the price offered by the highest bidder for purchasing IWEL's stake in the wind SPVs," IL&FS said in a statement.

The deal is expected to be closed by the end of June 2019. The sale completion is subject to meeting all compliances and approvals, including approval of the NCLT for the proposed resolution framework, it said.

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