Vedanta Group company Hindustan Zinc Ltd (HZL) has executed a long-term power delivery agreement (PDA) with a newly formed special purpose vehicle.
In a stock exchange communication, HZL said that the renewable energy-based PDA was signed between HZL and “Serentica Renewables India 4 Pvt Ltd” on September 2, 2022, envisaging renewable energy capacity of around 200 mw.
The SPV Serentica Renewables India 4 Pvt Ltd was incorporated on February 18, 2022, and will implement renewable energy projects to cater to long-term power requirement of HZL, under the newly-signed PDA. The SPV will develop RE projects with installed capacity of around 200 mw.
HZL further said that it will hold 26 per cent equity in Serentica Renewables while the remaining 74 per cent will be held by affiliated companies. The renewable energy projects will be developed on a debt-equity ratio of 70:30, HZL said.
The equity infusion will be at par as per Investment Agreement and the tariff rate agreed has been independently benchmarked by a third party with reference to prevailing market tariff for RE power and a cost-plus model prescribed by the Central Electricity Regulatory Commission, the HZL filing said.
Serentica Renewables India 4 Pvt Ltd will create captive power projects in different parts of India as per location suitability and provide renewable power to the Company on a long‐term basis.
Also read: Vedanta To Source 580 MW Of Renewable Energy For Pan-India Operations
Specifying the objective of creating the SPV, HZL said that Serentica Renewables India 4 Pvt Ltd has been created to deliver power over a long term period to HZL with an intent to meet HZL’s ESG goals and also to secure renewable energy under a group captive power setup,
Featured photograph shows an overview of Hindustan Zinc’s lead-zinc smelter located at Chanderiya, Rajasthan. (Photo: HZL)
