This Article is From Mar 09, 2016

Tata Power Unit Inks Pact to Acquire Indo Rama Renewables Project

Tata Power Unit Inks Pact to Acquire Indo Rama Renewables Project

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New Delhi: Tata Power arm TPREL has signed a pact with Indo Rama Renewables Ltd (IRRL) to acquire its 100 per cent subsidiary IRRJL, which owns a 30 MW wind farm in Sangli District of Maharashtra.

"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 Ltd and is registered under the Generation Based Incentive scheme of Ministry of New & Renewable Energy," Tata Power said in a press release on Wednesday.

It said that with the acquisition of, Indo Rama Renewables Jath Limited, (IRRJL), 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 5 states - Maharashtra, Rajasthan, Gujarat, Tamil Nadu and Karnataka.

Tata Power Renewable Energy LTD (TPREL) also has 250 MW of wind projects under construction across Gujarat, Madhya Pradesh and Andhra Pradesh.

Tata Power CEO and managing director Anil Sardana said the company "endeavours to generate 20-25 per cent of its total generation capacity from clean energy sources and is proud to have completed this acquisition of the 30 MW operational wind farm".

"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," he added.

Indo Rama Synthetics (India) Ltd executive director Vishal Lohia said, "Divestment from this wind asset shall enable us to have a more focused and effective approach towards managing our core business of polyester."

The move to divest wind asset will provide an impetus to further grow polyester business of IRSL, the company said in a filing to the BSE.

TPREL's strategy emphasises 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.

At 3:04 p.m., shares in Tata Power were trading 0.26 per cent lower at Rs 58.65 apiece on the BSE, whose benchmark Sensex index was up 0.52 per cent.