New Delhi: Blackstone, which has a $50 billion investment portfolio in India, has submitted a non-binding offer of $1.5 billion for Statkraft’s local arm that houses a 2 gigawatt renewable energy generation portfolio, according to people aware of the matter. This is the first time Blackstone is evaluating a renewable energy acquisition in India, they said. It recently closed a global energy transition fund raising $5.6 billion.

The offer has been approved by Norway-headquartered Statkraft’s global board and competes with those from KKR-backed Serentica Renewables, Sembcorp and BlackRock, according to the people cited. All other contenders have sizable renewable energy generation investments in the country and are said to be equally poised in the race.

A law firm will provide a due diligence report to the bidders this week. After that, they will submit final bids.

Statkraft, Europe’s largest renewable power firm, announced its intention to exit the India business in October last year, having entered the country in 2001. CEO Birgitte Ringstad Vardtal had said it was prioritising investments in Norway, Europe and South America.

Blackstone declined to comment. Statkraft’s India renewable energy generation assets are located in several states and its plants generate power from wind, water and sunlight.

To provide options to potential suitors, the India unit is being sold in four packages, said sources. The first entails wind and solar power assets in Rajasthan with a 1.5 GW capacity. The second package comprises two operational hydro power plants at Malana and Allain Duhangan in Himachal Pradesh, both being 49:51 joint ventures with India’s LNJ Bhilwara group. The third and fourth packages are single hydropower assets at Tidong in Himachal Pradesh and Kedarnath in Uttarakhand.