India's largest integrated power company Tata Power Co. Ltd. said its subsidiary Tata Power Renewable Energy Ltd. (TPREL) had signed a Share Purchase agreement (SPA) for acquisition of 100 percent shareholding in AES Saurashtra Windfarms Pvt. Ltd. (ASW), a subsidiary of AES Corporation based out of the US.
The acquisition is subject to certain conditions, which are expected to be addressed in a few months time, the company said.
ASW owns and operates a 39.2 MW wind farm near Dwarka in Jamnagar district of Gujarat. The project which is fully operational since January 2012 has executed a Power Purchase Agreement with Gujarat Urja Vikas Nigam Ltd. for sale of the electricity at a tariff of Rs.3.56/kWh for the duration of the project. The project is registered with United Nations Framework Convention on Climate Change (UNFCCC) as a Clean Development Mechanism (CDM) project and is eligible to receive CERs. The project is also registered under the Generation Based Incentive scheme of MNRE.
With this acquisition, Tata Power's total generation capacity will increase to 8,560 MW and its Wind Operational Generation capacity to 437 MW with WTGs located across five states Maharashtra, Rajasthan, Gujarat, Tamil Nadu and Karnataka, which are the leading states in promoting wind power generation in India.
Speaking on achieving this milestone, Tata Power Managing Director Anil Sardana said, "Tata Power is committed to generating 20-25 percent of its total generation capacity from clean energy sources and is proud to have signed this SPA to acquire 39.2 MW operational wind farm. The project is a clean energy project, which will enhance and increase company's clean energy footprint. This our second 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 stop towards the company's commitment to sustainability."
Tata Power currently has four of its renewable projects registered under the CDM program by UNFCCC. These projects include 50.4 MW wind project at Gadag, 50.4 MW wind project at Khandke and 50.4 MW wind project at Samana in Maharashtra. The fourth project is the 25 MW solar project at Mithapur in Gujarat.
At the BSE, Tata Power shares are currently trading at Rs.83.10, up 1.65 percent from the previous close.
by RTT Staff Writer
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