Alternatives has signed a definitive agreement to acquire three solar projects
aggregating 45 MW capacity from Punj Lloyd at an estimated enterprise value of Rs.3.5-3.75 billion (~$52.3-56 million). These projects include one operational project of 5 MW capacity in
Rajasthan, and two operational projects of 20 MW each in Punjab.
transaction calls for Punj Lloyd to divest its entire shareholding in the
subsidiaries that own and operate the solar projects. These include:
- a 5 MW solar project, owned and operated by Punj Lloyd Solar Power,
with a 25-year Power Purchase Agreement (PPA) signed with NTPC Vidyut Vyapar
Nigam, at a tariff of Rs.12.73 (~$0.19)/kWh
- a 20 MW solar project owned and operated by Punj Lloyd Surya Urja,
with a 25-year PPA signed with Punjab State Power Corporation at a tariff of Rs.8.49 (~$0.127)/kWh
- a 20 MW solar project owned and operated by Punj Lloyd Sunshine, with
a 25-year PPA signed with Punjab State Power Corporation at a tariff of Rs.7.45 (~$0.111)/kWh
activity in the secondary market is a positive sign for the young Indian solar
sector,” said Raj Prabhu, CEO and Co-founder of Mercom Capital Group. “As the
market matures and institutional investors like pension funds and investment
firms become more comfortable investing in solar projects, we will see more
appetite for quality projects with attractive returns."
Alternatives transaction will be closed once the customary approvals and
closing conditions are obtained. Greenstone Energy Advisors is acting as the
exclusive financial advisor to Punj Lloyd for the deal.
to Mercom's India Quarterly Report, over 1 GW of
project portfolios have been acquired this year alone, including Tata Power’s
acquisition of Welspun’s 1.1 GW renewable project pipeline for $1.4 billion.