Torrent Power on Tuesday announced that it has inked a share purchase pact to acquire 156 MW wind power projects for about Rs 790 crore from Surya Vidyut, an arm of CESC Ltd.
Surya Vidyut operates 156 MW wind power plants spread across the states of Gujarat, Rajasthan and Madhya Pradesh, a statement said.
The projects have long-term power purchase agreements (PPAs) with respective state discoms for a period of 25 years, with weighted average PPA tariff of Rs 4.68 per cent kWh.
Torrent Power has entered into an agreement with CESC Limited, Haldia Energy Ltd and other nominal shareholders for the acquisition of 100 per cent of the share capital of Surya Vidyut Ltd, the statement said. 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, the integrated power utility of the diversified Torrent Group, is one of the largest companies in the country’s power sector with a presence across the entire power value chain of generation, transmission and distribution.
Torrent Power has an aggregate installed generation capacity of 3,879 MW comprising of 2,730 MW gas-based capacity, 787 MW renewable capacity and 362 MW coal-based capacity. Further, renewable power projects of 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 to 4.9 GW with renewable portfolio of more than 1.8 GW. This acquisition initiates Torrent’s renewable energy presence in the states of Rajasthan and Madhya Pradesh and is in line with its strategy to grow and strengthen its position in the RE sector, the statement said.
The CESC Ltd belongs to RP-Sanjiv Goenka Group and is a vertically integrated power utility engaged in generation, transmission and distribution of electricity. CESC Limited (53.79%), Haldia Energy Limited (46.21%) along with other nominal shareholders hold 100% equity share capital of Surya Vidyut Ltd.