Domestic Power Sector Sees $1.6 Billion Worth Deals In 5 Months: Report

New Delhi: Reflecting increased deal-making activities, Indian power sector saw merger and acquisition transactions worth $1.6 billion in the first five months of 2016, says a report.

Consultancy EY today said the domestic power sector saw "significant traction" with M&A activities during January-May 2016 period.

"The deal volume and disclosed deal value in the sector stood at 17 deals and $1.6 billion, respectively (in January-May 2016) compared to 15 deals and $601 million for the corresponding period last year," it said in a statement.

At current exchange rate, $1.6 billion translates to more than Rs 10,800 crore.

Five deals, having disclosed value of $1.4 billion, were in the thermal power segment during the five months ended May 2016.

Renewable energy accounted for 65 per cent of the total deal volumes recorded in the first five months of this year.

The value of these transactions stood at $177 million.

Kuljit Singh, Transactions Partner and National Power & Utilities Leader at EY India, said the strong transactions trend is expected to continue as domestic and foreign players look to expand their portfolios.

"Deal activity in the renewable segment is expected to gain momentum as several large operational portfolios come up for sale/private investment and a large number of greenfield assets are opened for bids by the government," he added.

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