New Delhi: GE Energy Financial Services and Brookfield Renewable Power Inc. have exited a proposed renewable power joint venture (JV) with NTPC Ltd for setting up 500MW of non-conventional power generation capacity.

Next step: NTPC chairman and managing director R.S. Sharma.

The other partners in the proposed JV are the Asian Development Bank (ADB) and Kyushu Electric Power Co. Inc. While NTPC was to have 40% equity in the venture, the partners were to have a stake of 15% each.

“Both GE and Brookfield have withdrawn in the wake of the worldwide financial melt-down. We will discuss this with ADB, and if they agree, we can go ahead with this on our own," said R.S. Sharma, chairman and managing director, NTPC.

Questions emailed to GE and Brookfield remained unanswered on Wednesday, an ADB spokesperson in an email response declined comment and said: “As this transaction has not yet closed, we are bound by confidentiality provisions with our partners."

The proposed JV company was looking at wind power, and mini- and micro-hydroelectric power, and a memorandum of understanding was signed to this effect on 5 August 2008.

Wind power capacity creation requires relatively high capital compared with conventional power projects based on coal or gas. While it takes a capital investment of Rs4.2-4.5 crore per MW of power generated through coal-based or gas-based projects, wind-based projects require Rs6-7 crore per MW.

“The JV would initially develop projects in India and may consider having a regional and global outlook as a major investor and facilitator of renewable energy," NTPC had then said in a press release.

“A lot of players who had announced projects earlier have pulled out. We may not see any re-entry of players into the renewable space anytime soon, as globally financial stability is yet to be achieved," said Hitul Gutka, an analyst at Mumbai-based India Infoline Ltd.