Tata Power Co. Ltd declared on Sunday, 12 June 2016 night that it has agreed to acquire renewable energy company Welspun Renewables Energy Pvt. Ltd in a bid to grow its clean energy portfolio to 2.3 gigawatts (GW).
Tata Power’s renewable energy unit Tata Power Renewable Energy Ltd (TPREL) has signed an agreement with Welspun Renewables Energy in “the largest transaction in renewables space in India”. The Welspun Energy’s acquisition value is of Rs 9249 Crore. On Monday, 13 June 2016, Its shares were trading down 0.72% at 75.45 at the opening trading.
Welspun Renewables is a part of Welspun Group which is a worth of $3 billion. Welspun Renewables has about 1,140 megawatts (MW) of solar and wind power assets across eight states in India. TPREL currently operates 294 MW of renewable power capacity and about 400 MW of solar and wind projects are under implementation.
After the acquisition process, TPREL will own a capacity of 2.3 GW or 2,300 MW. Tata Power is one of the largest integrated power companies in India. Now The Company is targeting doubling its total generation capacity across thermal, renewable and hydropower to 18 GW or 18,000 MW by 2022 from 9 GW.
India has a target of installing 100GW of solar power capacity and 60GW of wind power capacity by 2022. Last year in December, US-based SunEdison Inc. terminated a deal to acquire Singapore-based Continuum Wind Energy Ltd, which has assets in India and is controlled by Morgan Stanley Infrastructure (MSI).
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