Larsen & Toubro, in a release, said that it will divest its entire holding in the 99-mw Singoli-Bhatwari hydropower project, in favour of ReNew Power.
The 3×33-mw run-of-river hydropower scheme is owned by L&T Uttaranchal Hydropower Ltd, a step-down wholly-owned subsidiary of Larsen & Toubro. L&T will divest its entire stake in this subsidiary to ReNew Power Services Pvt Ltd, a wholly-owned subsidiary of ReNew Power Pvt Ltd.
This divestment is in line with L&T ‘s declared focus of divesting non-core assets and improving shareholder value, the company said.
The transaction is subject to completion of customary closing conditions, and closing is expected to take place before September 30, 2021. The sale consideration is Rs.985 crore, L&T added.
D. K. Sen, Whole-time Director, Larsen & Toubro, speaking on the divestment said, “It represents our strategic effort to increase focus on our core strengths and exit others to move towards becoming a more asset-light organization.”
First hydropower asset
In a separate release, ReNew Power said that this acquisition marks ReNew’s entry into the hydropower sector, which is expected to play an important role in providing innovative renewable energy solutions for ReNew’s customers.
The addition of Singoli-Bhatwari hydropower project, which has a significant pondage capacity of 2–3 hours, adds 200–300 MWhr of low-cost hydro storage to ReNew’s portfolio. This further extends ReNew’s leadership in storage and reliable power solution, ReNew Power said.
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Newly-commissioned
Situated on the Mandakini River in Rudraprayag district of Uttarakhand, the Singoli-Bhatwari hydropower project turned operational in December 2020. With a residual life of 35 years, the hydropower asset is expected to annually generate 360 million kwh of electricity.
Solar acquisition
ReNew Power also said that in a separate transaction, the company has signed a definitive agreement to acquire 260 mw worth of operating solar projects in Telangana. The projects, with a 25-year PPA with Northern Power Distribution Company of Telangana Ltd. (NPDCTL) and Southern Power Distribution Company of Telangana Ltd. (SPDCTL), have been operating for around four years.
Featured photograph (source: L&T) shows the 99-mw Singoli-Bhatwari hydropower project in Uttarakhand. Housing three units of Voith turbine generators of 33-mw each, the hydropower plant is equipped with latest SCADA) technology that automatically monitors and controls the plant operations.
