13 June 2016 Current Affairs: Tata Power has acquired the renewable energy (RE) subsidiary of Delhi-based Welspun Energy. It is estimated to be a Rs 9,900-crore deal.
Tata Power’s subsidiary, Tata Power Renewable Energy Ltd (TPREL), signed a share purchase agreement with Welspun Energy to acquire Welspun Renewables Energy Pvt Ltd (WREPL).
The portfolio Tata has bought comprises 990 Mw of solar power projects and about 150 Mw of wind power projects. Of this, 1,000 Mw is operational and the rest in “advanced stages of execution.
The assets of Welspun Energy have been on the block for a year; this newspaper had reported last year about companies being interested in buying. Japan’s SoftBank, on these, dropped out, as did Hero Future Energies and ReNew Power, said senior executives.After the new purhase, TPREL would have an RE portfolio of 2,300 Mw, making it the largest such in this segment, in India. It had till now 294 Mw of capacity; another 500 Mw of assets were being carved out of Tata Power through a court process. And, almost 400 Mw of solar and wind power projects are under implementation.
It had got institutional funding from across the globe for some key projects. General Electric made its first Indian solar energy investment in the company, funding $24 million at a Neemuch, Madhya Pradesh-based 151 Mw project. The Asian Development Bank also made its first equity infusion in India as part of a $50-mn commitment into the company.