Green energy developers steer clear of China funding links

Indian green energy promoters have told deal advisors to ensure there’s no China connection to inbound funds, according to several developers currently raising funds.

Given the long duration involved in closing such deals, promoters say they are trying to avoid a situation where they discover a China connection later, which could set back the whole exercise.

With government clearance mandatory for all foreign direct investment (FDI) from countries with which it shares land borders, developers are being extra cautious with due diligence. They believe the chances of securing approval for Chinese investments are slim. Across the border, too, the Chinese Communist Party recently unveiled a plan for better control over private businesses.