Hong Kong based CLP Group has forayed into the Indian solar energy market by acquiring 49% stake in Suzlon EnergyBSE 1.15 %’s 100 mw project in Telangana, the two companies said in a joint statement Monday. While the two companies will develop the project at Veltoor in Telangana in a joint venture, under s special purpose vehicle namely SE Solar, CLP India will have the option to acquire the balance 51% stake later. ET had first reported the deal on May 30. (Read more: CLP set to buy Suzlon’s Rs 800 crore Telengana project for India solar debut ). “We have been keen to invest in solar in India to complement our wind portfolio, and have evaluated projects that will be value-enhancing for our shareholders, whilst being attractive for our customers. The Veltoor solar project meets both the criteria. We remain keen and will continue to explore such projects to expand our renewable energy footprint in Telangana and across India,” Rajiv Mishra, managing director, CLP India, was quoted as saying in the statement. The two companies did not disclose the deal size. The Rs 800 crore project needs Rs 150 crore of equity and the rest will be financed through debt. The country’s second-largest wind turbine manufacturer, Suzlon made its entry into solar in January by winning the rights to set up 210 MW of solar plants in Telangana in this financial year across six projects. The largest is the 100 MW one that Suzlon is planning to monetise first, the others being one of 50 MW and four of 15 MW each. The 100 MW project is due for commissioning on May 31, 2017. The target of 175 GW renewable energy by 2022 outlined by the government of India, offers an opportunity of over 100 GW solar in the next six years. I am confident, with the conducive policy environment and public-private partnership we will seize this opportunity to ensure sustainable, affordable and reliable energy for all. We look forward to continuing our long-standing relationship with CLP and contribute towards nation’s energy security,” Tulsi Tanti, chairman and managing director of Suzlon Group said. CLP has identified India as a primary growth market for CLP and the Veltoor solar project will help the company inch closer to its target of having 20% of power generated by renewable energy by 2020. Recently, CLP India also signed a memorandum of understanding with the government of Haryana to set up a 132 mw solar project at its Jhajjar power station.
Source: ET Bureau