CLP India, an independent power producer is in talks with Mahindra Susten to acquire 160 MW of its solar energy assets and expand its renewable energy portfolio.
According to news sources, the deal which is likely to close by February-end will fetch between Rs 850 crore to Rs 1,000 crore. The current cost of setting up a solar project is Rs 5 crore/MW to Rs 5.2 crore/MW. If the deal closes at the above pricing, then the cost of setting up a solar project will approximate between Rs 5.31 crore/MW to Rs 6.25 crore/MW.
Earlier CLP India and Piramal Group had submitted binding offers for acquisition of Mahindra Susten’s solar assets, however Piramal Group later backed out over valuations, a news report stated. Considering the superior quality of Mahindra’s assets, the deal will likely fetch a higher premium over its current valuations.
CLP’s India renewable energy portfolio includes 16 wind energy and three solar energy projects spanning seven states amounting to over 3,000 MW. The company also owns a coal-fired power plant in Haryana and a gas-based power plant in Gujarat.
In July 2019, CLP India entered into a binding agreement with Kalpataru Power Transmission to sell its stake in three power transmission assets for Rs 3,275 crore. CLP India is backed by Canada’s second-largest pension fund Caisse de dépôt et placement du Québec (CDPQ) to emerge as one of the largest buyers of infrastructure assets.