ADAG group's VC fund invests in cleantech firm AllGreen

MUMBAI: Anil Ambani Group's venture capital arm Reliance Venture Asset Management (RVAM) has forayed into the strategic cleantech sector and announced an investment in the biomass energy start-up AllGreen Energy.

Along with an affiliate of General Electric (GE), RVAM has completed the Series A funding for the Bangalore- headquartered AllGreen Energy, a release issued here by RVAM said, adding this is the first investment by the fund in the strategic cleantech space comprising wind, solar, hydel.

AllGreen will utilise the funding for its 6.4 MW biomass project--which involves utilising agricultural waste to generate power--in Tamil Nadu's Perundurai and the company intends to establish more such projects in the country in the next 10 years totalling nearly 100 MW of installed capacity.

"The demand in India, for energy from renewable sources has become pressing. The (Perundurai) project will be the largest Biomass Integrated Gasification Combined Cycle Power based plant in India," RVAM's Chief Executive Harshal Shah was quoted as saying.

Nuances of the deal, including valuations and the stake bought, were not immediately disclosed.

The company will generate revenues from producing renewable power, selling by-product charcoal, sale of carbon credits; while the heat generated will be used to power cold storage facilities, it added.

This is the sixth investment by RVAM this fiscal and RVAM's current investment portfolio comprises 15 companies in various sectors.