Purvah Green Power Pvt Ltd, the renewable energy arm of group flagship CESC Ltd, will acquire the projects, which have a combined generation capacity of 1.4 GWp, RPSG said on Monday.
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The solar assets, located across Rajasthan and Karnataka, are housed in six special purpose vehicles (SPVs). The transaction, valued at USD 509 million at an exchange rate of Rs 95.5 to the dollar, has been funded by Purvah’s parent company, according to the group.
The acquisition will give Purvah immediate operating capacity and a larger base of assets backed by long-term contracted revenues. It also shifts the company’s renewable portfolio towards operational projects, alongside its existing pipeline of assets under construction and development.
More than 90% of the acquired 1.4 GWp capacity is tied up under long-term power purchase agreements (PPAs) with the Solar Energy Corporation of India (SECI). The remaining capacity has been contracted with Karnataka’s distribution companies.
All the PPAs have a tenure of 25 years, providing the acquired assets with long-term revenue visibility.Also Read: Government explores incentives for polysilicon manufacturing to boost solar energy production
Shashwat Goenka, Vice Chairman, RPSG, said: “This acquisition marks a significant acceleration of our renewable energy journey. It gives us immediate operating scale, complements our strong pipeline of contracted capacity, and meaningfully brings forward the growth of the platform.”
The deal will take Purvah’s total contracted renewable capacity to about 4.8 GWp from the current 3.4 GWp.
Of the enlarged portfolio, around 1.8 GWp will be operational, while another 3 GWp will be at various stages of construction. Purvah also has 2.2 GWh of battery storage capacity under implementation.
The acquisition is part of RPSG’s broader plan to build a 10 GW renewable energy platform over the next few years. By adding operating assets to its portfolio, the group is seeking to scale up its renewable business while increasing the proportion of capacity generating contracted cash flows.
Purvah Green Power was incorporated in December 2023 as CESC’s renewable energy platform. It develops and operates utility-scale solar, wind and hybrid renewable energy projects across India and is part of the RP-Sanjiv Goenka Group.