Aditya Birla Group through Aditya Birla Nuvo (ABNL) has entered into a partnership with Abraaj Group, a leading investor operating in global growth markets, to build a large scale renewable energy platform by focusing on developing utility-scale solar power plants in India.
For this purpose, ABNL has entered into a definitive share subscription and shareholders agreement (SSA) with an affiliate of Abraaj and in accordance with the SSA, subject to necessary approvals, ABNL and the Abraaj affiliate will hold 51 per cent and 49 per cent of the paid-up share capital respectively, in Aditya Birla Renewables , currently a wholly-owned subsidiary of ABNL.
“Aditya Birla Renewables , the solar power platform, will bid for projects tendered at national and state auctions, with the intent to develop and operate utility-scale solar power plants that can provide clean and cost-effective electricity to the national grids across several key states in India,” Aditya Birla Group said in a statement.
“The Aditya Birla Group supports the Government’s initiative for a greater share of renewables in the energy mix, essential for sustained economic and industrial growth. This co-operation will give a fillip to the Aditya Birla Group’s renewable energy initiatives and contribute to reducing the carbon footprint of India as a whole,” Dev Bhattacharya, Business Head, Group Corporate Strategy, Solar Power & E-Commerce, Aditya Birla Group, said.
Sev Vettivetpillai, Partner and Global Head of Abraaj’s Thematic Funds Business, said, “The gap in energy infrastructure in growth markets translates into a long-term and sustainable investment opportunity. Renewable energy is set for explosive growth, thanks to technological advances, favourable policies and pricing structures, that make it a competitive alternative to conventional power generation.”
“At Abraaj, we see significant opportunity in India, one of the world’s biggest energy consumption markets. We look forward to working closely with the Aditya Birla Group to provide clean energy to Indian businesses, communities and consumers,” he said.
Mustafa Abdel-Wadood, Partner and Global Head of Abraaj’s Regional Funds Business, added, “The renewable energy sector in India offers vast potential for growth and can play a transformative role in reducing dependency on fossil fuels and enhancing India’s long-term energy security.” The Abraaj Group has comprehensive investment experience across the energy value chain and has invested $1 billion in 10 investments in global growth markets.
