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Suzlon to offload 49% stake in two solar projects in Maharashtra to CLP

Amritha Pillay/Mumbai 11 Sep 18 | 07:30 PM

Wind power, Suzlon

Green energy solutions provider Suzlon Energy has entered into an agreement with CLP India to divest 49 per cent stake in two of its solar projects, the company said on Tuesday.

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“CLP India, one of the largest foreign investors in the Indian power sector and Suzlon, country’s largest renewable energy solutions provider, today announced a joint venture (JV) for two solar projects of 50 Mw and 20 Mw in Dhule, Maharashtra," CLP India said. Both companies, however, did not disclose the deal value. "With wind energy, we have been able to grow our footprint to almost 1,000 Mw and we are confident of steadily building on our solar energy footprint. We already have two wind energy projects in Maharashtra and we are happy to add another two solar projects here," said Rajiv Mishra, managing director, CLP India.

The company said it had the option to acquire the balance 51 per cent stake in the two projects. According to the agreement, CLP will pick 49 per cent stake in Gale Solarfarms and Tornado Solarfarms — the two special purpose vehicles holding the assets in Maharashtra.

ALSO READ: Suzlon targets commissioning 30% of the 20,000 MW wind capacity by FY21

The two projects have a power purchase agreement at a fixed tariff for 25 years at Rs 4.115 per unit for 20 Mw and Rs 3.66 per unit for 50Mw, CLP said. Mahesh Makhija, director for commercial renewables, CLP India, told Business Standard the firm would focus on assets that offer desired returns irrespective of what tariff the agreements were signed. This will be CLP’s second JV with Suzlon, the company in 2016 picked a similar stake in a 100-Mw project with Suzlon. 

Makhija said," The company is equally focused on both greenfield and acquisitions." However, building organic assets in the current market faces high competition and aggressive bidding challenges. Makhija is hopeful to close one more acquisition in the solar power space in the current financial year and is open to look at acquisitions in the transmission space. 

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