Genus Power & Infrastructures Ltd has incorporated special purpose vehicles for implementation of AMISP projects.
In a stock exchange filing, Genus Power & Infrastructures Ltd said that it has incorporated a wholly-owned subsidiary “Genus Mizoram SPV Pvt Ltd” on July 26, 2023. This SPV has been formed for execution of an AMISP (advanced metering infrastructure service provider) contract.
It may be recalled that in March 2023, Genus incorporated a similar SPV “Genus Tripura SPV Pvt Ltd’, also for execution of AMISP contracts.
Step down subsidiary
On July 19, 2023, “Genus Chhattisgarh PKG 1 SPV Pvt Ltd” was incorporated as a wholly-owned subsidiary of “Hi-Print Energy Solutions Pvt Ltd,” in turn a wholly-owned subsidiary of Genus Power Infrastructures Ltd.
RDSS mandates
In recent months, Genus has been winning a series of AMISP mandates under the Revamped Distribution Sector Scheme (RDSS). In early July 2023, Genus reported the winning of a letter of award worth over Rs.2,200 crore for an AMISP project. However, no details of the entity placing the award were provided. (Read more). Another award, worth nearly Rs.3,000 crore, was announced in January 2023, once again with no details. (Read more)
From the formation of the aforementioned SPVs, it may be surmised that Genus Power has won AMISP mandates under RDSS in Tripura, Mizoram and Chhattisgarh, among other locations like Bihar.
It is learnt that the order backlog of Genus Power currently stands in excess of Rs.6,000 crore.
Investment Platform
It may be recalled that in early July this year, Genus Power teamed up with Singapore-based GIC to form an investment platform of $2 billion for undertaking AMISP projects. GIC would be the larger investor in the platform with 74 per cent equity stake with Genus holding the remaining 26 per cent.
The $2-billion platform will have a mix of equity and debt. The investment by Genus for 26 per cent equity stake would be around $211 million.
Here is how the investment platform will work:
- The platform (and not Genus Power) would be the entity bidding for AMISP concessions
- Genus Power will be the exclusive technical partner — supplier of meters and services — to the platform for AMISP projects won by the platform
- Around 60 per cent of the project value won by the platform is expected to accrue to Genus Power and the remaining 40 per cent to the platform
- All AMISP projects currently with Genus Power (except for Rs.1,000 crore of projects in Bihar that were awarded in 2022) will be transferred to the platform. The total value of AMISP projects to be transferred to the AMISP would be in the region of Rs.5,000 crore
- The platform has targeted installation of 30 million smart meters over the next 3-4 years, which translates to order volume of around Rs.30,000 crore
- The various project SPVs formed (such as those discussed above – Mizoram, Tripura and Chhattisgarh) will receive funding from the platform. Genus will receive business from the SPVs, while the SPVs will be billing the utilities (entities placing the AMISP orders)
- Currently, all the SPVs are wholly-owned subsidiaries (or step-down subsidiaries) of Genus Power. However, given the way the investment platform is going to work, it is likely that there would be some ownership restructuring of these SPVs.
Featured photograph shows a manufacturing facility of Genus Power
