Tata Power Renewable Energy Limited (TPREL), a 100% subsidiary of Tata Power, India’s largest integrated power company, has signed a SPA with Indo Rama Renewables Limited (IRRL) to acquire its 100% subsidiary Indo Rama Renewables Jath Limited (IRRJL), which owns a 30 MW wind farm in Sangli District of Maharashtra.
IRRJL is a 100% step down subsidiary of Indo Rama Synthetics India Limited (IRSL), one of India’s largest players in the business of manufacturing polyester.
The transaction shall be consummated within the next few weeks.
The wind farm which is fully operational since July 2013 has executed a long-term power purchase agreement with Maharashtra State Electricity Distribution Limited and is registered under the Generation Based Incentive scheme of Ministry of New & Renewable Energy.
With this acquisition, Tata Power’s total generation capacity will increase to 9130 MW and its operational Wind power generation capacity to 570 MW with wind turbines located across five states - Maharashtra, Rajasthan, Gujarat, Tamil Nadu and Karnataka – [which are the leading states in promoting wind power generation in India]. TPREL also has 250 MW of wind projects under construction across Gujarat, MP and AP.
Speaking on achieving this milestone, Mr. Anil Sardana, CEO & Managing Director, Tata Power, said:
“Tata Power endeavours to generate 20-25 % of its total generation capacity from clean energy sources and is proud to have completed this acquisition of the 30 MW operational wind farm. The project is a clean energy project, which will enhance and increase the Company’s clean energy footprint. This is our third acquisition of an operating wind asset and we are in constant look out for similar opportunities in respect of wind and solar plants. This is yet another step towards the Company's commitment to sustainability."
Mr Vishal Lohia, Executive Director, IRSL, commenting on this transaction said:
"Divestment from this wind asset shall enable us to have a more focused and effective approach towards managing our core business of polyester."
TPREL’s strategy emphasizes the development of clean energy generation from non-fossil fuel and renewable energy sources to balance the carbon emissions from fossil fuel based generation capacity while contributing towards energy security of the country.
Hemant Sahai Associates and Deloitte Touche Tohmatsu India LLP acted as the legal and financial and accounting advisors respectively to TPREL. Yes Securities (India) Ltd and Shardul Amarchand Mangaldas & Co were the respective financial and legal advisors of IRRL for this transaction.