Khopoli Investments Limited, a subsidiary of Tata Power, has joined hands with South Africa-based Exxaro Resources Limited (Exxaro) to form a joint venture (JV) to create a new company, Cennergi (Pty) Limited, to bid for projects in African countries.
Cennergi, based in South Africa, will focus on areas such as feasibility, development, ownership and operations of electricity generation projects in South Africa, Botswana and Namibia, according to a release by Tata Power.
Tata Power Managing Director Anil Sardana said his company was happy to pursue new avenues in the international space by partnering good local entities.
“The joint venture is consistent with our strategy of pursuing growth opportunities for energy development in potential markets,” he added.
“Cennergi has been created by companies from developing nations to serve developing nations. We expect Cennergi to play a key role in African electricity generation market,” Sipho Nkosi, Exxaro Chief Executive Officer, said. Cennergi will be officially launched with effect from April 2012.
The initial focus of the company would be on renewable energy projects in South Africa. Cennergi's strategy is to create a balanced portfolio of generation assets.
The generation capacity of Tata Power is about 4,772 MW from all sources of energy.
It has also acquired 30 per cent stake in coal companies in Indonesia and is developing the 4,000 MW ultra mega power project at Mundra in Gujarat.
Shares of Tata Power were trading at Rs.113.80, down 1.56 per cent on the BSE.