Torrent Power has signed a share purchase agreement to acquire full shareholding of Surya Vidyut Ltd (SVL) that owns wind power assets worth 156 mw. Surya Vidyut is part of the CESC Group.
The agreement has been entered into with CESC Ltd, Haldia Energy Ltd and other nominal shareholders of SVL for acquisition of 100 per cent equity of SVL.
Surya Vidyut owns156 mw of operational wind power plants, spread across Gujarat, Rajasthan and Madhya Pradesh. Long-term Power Purchase Agreements (PPAs) for the projects are with respective state discoms for a period of 25 years, with weighted average PPA tariff of Rs.4.68 per kwh.
The enterprise value estimated for this acquisition is about Rs.790 crore, subject to closing price adjustments. The acquisition is further subject to customary conditions for transaction closure, Torrent Power said in a statement.
Torrent Power, the integrated power utility of the diversified Torrent Group, is present across the entire power value chain of generation, transmission and distribution.
Torrent Power currently has an aggregate installed generation capacity of 3,879 mw comprising 2,730 mw gas-based capacity, 787 mw renewable capacity and 362 mw coal-based capacity.
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Further, renewable power projects of around 815 mw are under development, of which LOAs have been received and PPA has been executed for projects of 515 mw. With the acquisition of 156 mw wind power plants, Torrent Power’s total generation capacity, including under development portfolio, will reach 4.9 GW with renewable portfolio of more than 1.8 GW.
This acquisition initiates Torrent’s renewable energy presence in Rajasthan and Madhya Pradesh and is in line with the company’s strategy to grow and strengthen its position in the renewable energy sector, the release added.
Featured photograph sourced from suryavidyut.in