India Grid Trust “IndiGrid”, India’s first power infrastructure investment trust (InvIT), announced the completion of acquisition of 100% stake in two solar assets with cumulative capacity of 100 MW (AC) from Fotowatio Renewable Ventures (FRV) at an enterprise value of ~INR 6.6 Bn.
With this acquisition,its asset portfolio now consist of 14 diversified power projects consisting of 40 transmission lines (~ 7,570 ckms) ,11 substations (~13,550 MVA capacity) and 100 MW of solar power plants across 18 states and one Union Territory.
IndiGrid’s acquisition of its first solar asset is an important milestone in the Indian infrastructure sector as this marks the first renewable energy acquisition by any InvIT in the country.
The 100 MW assets are fully operational and located in the 400-MW Ananthapuramu Solar Park in Andhra Pradesh. The projects have been operational for over two years.
As per the press release this transaction is in line with IndiGrid’s strategy to acquire solar projects with long term power purchase agreements, operational track record and financially strong counterparties / off-takers such as SECI and NTPC.
Commenting on the acquisition, Harsh Shah, Chief Executive Officer of IndiGrid, said “We are excited to diversify our portfolio and add the first set of solar assets. This acquisition is DPU accretive and would result in healthy addition to our net distributable cash flow. While power transmission assets remain at the core of IndiGrid’s growth strategy, we believe such attractive opportunities to acquire good quality solar projects ties in well with our strategy of providing predictable cash flows to our investors and reinforces our commitment to be a socially responsible organization.”