Suzlon to strike a 14-cr deal with AMP Solar

The Dollar Business Bureau

After signing deals with Ostro Energy Pvt. Ltd and CLP India Pvt. Ltd for its solar projects, wind turbine maker Suzlon Energy is ready to sell its 49 per cent stake in its special purpose vehicle (SPV) Rudra Solarfarms Ltd to Canadian solar firm AMP Solar Group for Rs 14 crore. 

AMP can later go for purchasing the remaining 51 percent stake in the SPV. The Telangana State Southern Power Distribution Co Ltd will be the beneficiary of the power produced which will be sold at a tariff of Rs 5.599 per kilo-watt hour under a 25-year power purchase agreement (PPA). 

Suzlon will be giving maintenance (O&M) services to the 15 megawatt (MW) project for 25 years. The company is looking at commissioning the project in financial year 2017, which will be located in Achampet, Telangana. 

The project was given to Suzlon last year during a competitive bidding process that took place in Telangana for the 210 MW of solar projects. Their earlier deals with Ostro Energy and CLP India were also a part of this 210 MW portfolio.

Suzlon had made its official foray into the solar energy market in January, receiving letters of interest (LoI) for the 210 MW projects that it won in Telangana in August 2015. These included a 100 MW project, a 50 MW project and four projects of 15 MW each, and the power purchase agreements (PPAs) were signed in February. 

According to Pinaki Bhattacharyya, chief executive of AMP Solar’s India unit, the deal will be very beneficial to their investors and stakeholder in the backdrop of the booming renewable energy market in India.