Tata Power has completed its acquisition of Welspun Renewables Energy’s 1.14GW portfolio and appointed Chetan Tolia as chief executive of the newly bought firm.
Welspun Renewables Energy, the clean power arm of Indian conglomerate Welspun Group, is one of India’s largest solar operators, with projects across 10 states. Its portfolio comprises about 990MW of solar assets and 150MW of wind projects. Over 1GW of the capacity is operational, with the rest under advanced stages of implementation.
Tata Power acquired the unit for 92.5 billion rupees ($1.38 billion; €1.24 billion), marking India’s largest-ever transaction in the renewables sector.
Chetan Tolia has been appointed chief executive and executive director of Tata Power Renewable Energy, the wholly owned subsidiary of Tata Power which will control the acquired assets. He was Tata Power’s chief human resources officer prior to this appointment.
Prior to the deal, Tata Power’s renewables arm owned 312MW of renewable power, with 500MW of assets now being carved out of the parent group into the unit through a court process, the company said in a statement. In addition, about 400MW of solar and wind projects are currently being developed.
With the deal now completed, Tata Power now runs a 2.3GW portfolio of renewables assets, making it the largest renewable power company in the country.
“The acquisition is a significant step towards attaining the company’s objective of having non-fossil fuel based capacity up to 30-40 percent of its total generating capacity,” said Anil Sardana, chief executive and managing director of Tata Power, in a statement.
He added that the company is still looking to grow its renewables capacity through organic growth and acquisitions.
Earlier this month, Tata Power teamed up with ICICI Ventures to set up an $850 million platform that targets thermal and hydroelectric businesses as well as transmission assets in India. The platform is also backed by Canada’s Canada’s Caisse de dépôt et placement du Québec, the Kuwait Investment Authority and the State General Reserve Fund of Oman.