IndiaGrid Trust (IndiGrid), India’s first power infrastructure investment trust (InvIT), has completed acquisition of 100 percent stake in two solar assets with cumulative capacity of 100 MW(AC) from Fotowatio Renewable Ventures (FRV) at an enterprise value of Rs 6.6 billion.
With this acquisition, the portfolio will now consist of 14 diversified power projects consisting of 40 transmission lines (approximately 7,570 ckm), 11 substations (approximately 13,550 MVA capacity) and 100 MW solar power plants across 18 states and one Union Territory.
IndiGrid’s acquisition of its first solar asset is an important milestone in the Indian infrastructure sector as this marks the first renewable energy acquisition by any InvIT in the country. The 100 MW assets are fully operational and located in high radiation zone in the 400 MW Ananthapuramu Solar Park in Andhra Pradesh with a contractual period of 25 years at a fixed tariff.
The power purchase agreement (PPA) for both assets is already in place with the Solar Energy Corporation of India (SECI), a limited liability company owned 100 percent by the government of India, as the counterparty. The projects have been operational for over two years and have a robust track record of generation and collections since inception.
The acquisition will be funded through a combination of debt, internal accruals and recent Rights Issue. Greenstone Advisors acted as the sell-side advisor on the transaction representing FRV.