Multinational conglomerate Aditya Birla Group has partnered with private equity investor Abraaj Group to develop utility-scale solar power plants in India.
Aditya Birla Group will invest in the partnership's renewable energy platform through Aditya Birla Nuvo Limited (ABNL) while Abraaj will invest through one of its affiliates.
Through a shareholder’s agreement, ABNL will hold 51% of share capital in the solar power platform named Aditya Birla Renewables Limited, which is a wholly owned subsidiary of ABNL, while the Abraaj affiliate will hold 49% of the share capital.
Aditya Birla Renewables Limited plans to bid for projects tendered in both state and national auctions in India. For example, there are state auctions coming up in Maharashtra, Karnataka, Gujarat and Uttar Pradesh.
A statement from Aditya Birla Group said that the partnership comes at an “opportune” time, given the Indian Government’s target of 100GW of solar capacity by 2022, up from the current installed capacity of just more than 4GW.
Sev Vettivetpillai, partner and global head of Abraaj’s Thematic Funds Business, said: “The gap in energy infrastructure in growth markets translates into a long-term and sustainable investment opportunity. Renewable energy is set for explosive growth, thanks to technological advances, favourable policies and pricing structures that make it a competitive alternative to conventional power generation.
“At Abraaj, we see significant opportunity in India, one of the world’s biggest energy consumption markets. We look forward to working closely with the Aditya Birla Group to provide clean energy to Indian businesses, communities and consumers.”
In July, PV Tech reported Aditya Birla Nuvo's plan for a "foray" into the Indian solar market, after a Bombay Stock Exchange (BSE) filing.
In other India news, The Solar Energy Corporation of India (SECI) officially changed its name to the Renewable Energy Corporation of India (RECI) marking its trasnformation into a commercial entity in order to become a player in the Indian solar market.