Tata Power on Tuesday said in a statement that it would acquire the remaining 51 per cent stake from BP Alternative Energy Holdings in the joint venture Tata BP Solar.
On completion of the transaction, Tata Power will own 100 per cent of the company, the statement said.
The transaction which also entails a change in control in the company would require approval from the Reserve Bank of India and The Competition Commission of India (CCI).
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Tata Power and BP have agreed that the company will continue to enjoy access to certain BP technology until 2013.
The company and BP will enter into a technology agreement to give effect to this understanding, it said.
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“We are happy to acquire higher equity in Tata BP Solar. We believe the favourable policy environment in India has led to an increase in the size of the solar module and solar cell market. We would also like to reiterate that Tata BP Solar is not impacted by the decision of BP to gradually exit its solar business and that it is business-as-usual for them,” Anil Sardana Managing Director Tata Power said. Tata BP Solar has a 125 MW solar module manufacturing capacity.