CLP India enters agreement for 49% interest acquisition in 70 MW solar projects

CLP India, one of the largest foreign investors in the Indian power sector, and Suzlon, India's largest renewable energy solutions provider, have announced a joint venture for two solar projects of 50 MW and 20 MW in Dhule, Maharashtra.

As per the agreement signed between the two parties, CLP India has agreed to acquire a 49% stake in Gale Solarfarms Limited and Tornado Solarfarms Limited, two special purpose vehicles (SPV) set up by Suzlon. CLP India has the option to acquire the balance 51% stake in the future.

CLP will acquire a 49% stake in Gale and Tornado for a cash consideration of INR23.49 billion and INR15.57 billion respectively. The company may then acquire the remaining 51% stake one year after the projects' Commercial Operations Dates, as permissible under their power purchase agreements (PPAs), at a value derived as per the then prevailing pricing guidelines

The solar projects have PPAs with Solar Energy Corporation of India Limited (SECI) for 25 years at 4.115 INR/kWh for 20 MW and 3.66 INR/kWh for 50 MW. Suzlon is responsible for the comprehensive operation and maintenance of these projects.