KP Group's Rs 36,000 Crore Botswana Entry And The Role Of Indian President Droupadi Murmu
Patel revealed that the deal was not done overnight and had been simmering for three months.
KPI Green Energy shares have been in focus on Thursday after its parent company KP Group announced a massive pact with the Botswana government worth Rs 36,000 crore. The deal kickstarts
In a conversation with NDTV Profit, Faruk G Patel, Founding Promoter of KPI Green, explained why the company chose Botswana as the ideal location for its international expansion and the role India President Droupadi Murmu played.
Patel revealed that the deal was not done overnight and had been simmering for three months. The most important development came about a month ago, when President Murmu led an esteemed panel of SGCCI delegates to Botswana.
Chairman Faruk G Patel and CEO Robbi Rajasekharam were among the top delegates visiting the country. For the KP Group, it was love at first sight.
"When we went to Botswana, we observed very good sun and wind. It’s a landlocked country, and the government is very supportive. Considering all these things, we decided to grab the opportunity," Patel told NDTV Profit.
He added that President Droupadi Murmu played a key role in the deal as well, as she urged the company to harbour close ties with Botswana for the betterment of the relations between the two countries.
"President of India also wants us to do something for Botswana for the better collaboration between the two countries. This has been cooking for the last three months," he revealed.
KP Group eventually announced the deal this week, in which the renewable energy company will develop renewable power generation projects while setting up energy storage systems.
KP Group will also build and upgrade power transmission infrastructure in the country, with a focus on planning, execution, and long-term operations.
Overall, KP Group plans to add around 5 gigawatts of renewable energy capacity in Botswana, which includes high-voltage transmission lines and cross-border connectivity.
Talking about the timeline of events, Patel confirmed that the first phase will comprising 500 megawatt will be done by 2027.
The company plans to raise capital through special purpose vehicle (SPV), meaning the promoters won't be diluting shares. "We are not diluting our equity. We will raise money through a Special purpose vehicle," he said.
