CLP India, one of the major investors in Indian power sector, and Suzlon Group, a provider of renewable energy solutions, have entered into a joint venture for a 100MW solar project at Veltoor village located in the South Indian state of Telangana.
Under the deal, CLP India purchased 49% stake in SE Solar, a special purpose vehicle (SPV) set-up by Suzlon.
In future, the company also holds an option to acquire remaining 51% from Suzlon.
The project is expected to be commissioned by May next year, and will be funded 80% by debt and 20% by equity.
India is one of the important markets for CLP, and the new project will not only strengthen its expansion plans in the country but also will help in meeting 20% of power generated by renewable energy by 2020.
CLP India managing director Rajiv Mishra said: "Our approach to the market evolves around the
kind of opportunities available as well as the prevailing policy framework.
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By GlobalData"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 believe that the state of Telangana has a favourable solar policy, which creates a conducive environment for us.
"We remain keen and will continue to explore such projects to expand our renewable energy footprint in Telangana and across India."
CLP India also signed a Memorandum of Understanding (MoU) with the State Government of Haryana for construction of 132 MW solar project at its Jhajjar power station.
