
Hexa Climate Solutions acquires Fortum's green energy portfolio in India
Hexa Climate Solutions Pvt. Ltd, a I Squared Capital portfolio company, has acquired the renewable energy development portfolio of Finland-based Fortum in India.
Under the terms of the transaction, Hexa Climate Solutions has acquired a 100% stake in Fortum India Pvt. Ltd (FIPL), including its 40-member team, its 206MW commercial and industrial (C&I) renewable energy portfolio and approximately 600MW of ready-to-build renewable projects.
Hexa Climate Solutions, backed by I Squared Capital, plans to invest approximately $500 million to scale its renewable energy, water, and carbon platforms in India and other emerging markets, said a statement from Hexa.
It said that the transaction is in line with Fortum's strategy announced in 2024, when the company divested its ownership in the 185MW Indian solar portfolio to limit its exposure in the country and evaluate alternatives for an exit from the Indian market. Fortum's core operations and main geographical focus are in the Nordics.
'The acquisition of Fortum India marks a significant step in Hexa Climate Solutions' mission to accelerate the clean energy transition across emerging markets. With this acquisition, Hexa Climate reinforces its strong 2.5 GW development pipeline and strengthens its position as a leading climate-focused platform,' said Sanjeev Aggarwal, founder and executive chairman, Hexa Climate Solutions.
Noting that India has been an important part of Fortum's international journey, Peter Strannegård, executive vice president, renewables and decarbonisation at Fortum, said: "We are pleased that the Fortum India team and platform have found a new home with Hexa Climate Solutions, a committed renewable energy player."
On 25 April, Mint reported that Finland's state-run energy utility Fortum Oyj is exiting India's renewable energy market by selling its platform FIPL to New York-based I Squared Capital-backed Hexa Climate Solutions.
There were five bidders in the sales process run by EY, including Japan's Marubeni Corp., Dutch pension fund APG, and infrastructure fund manager AP Moller Capital. A total of 10 companies including steel and mining major ArcelorMittal had signed non-disclosure agreements (NDA) for the transaction termed as project Samsara.
First Published: 30 Apr 2025, 09:09 PM IST
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
31 minutes ago
- Time of India
How the Satcom permit may force Elon Musk's Starlink to do in India what it has been refusing to do so far: Listen to ...
Elon Musk 's Starlink recently received a licence from the telecom department for providing satellite internet services (Satcom) in India. The licence is a key milestone that will take it closer towards launching commercial operations in the country. With this, Starlink becomes the third company after Eutelsat OneWeb and Jio Satellite Communications to get a licence from the Department of Telecommunications ( DoT ) to provide satellite internet services in the country. A fourth applicant, Amazon's Kuiper is still waiting for approvals. Starlink's satcom permit from the Indian government may now force the company to do what it had not been doing so far per se, which is cooperate with security agencies on matters related to India's national security. As a report in Economic Times says, the licence will make it mandatory for Starlink to share information, including details of users or owners of satellite kits seized in the country, particularly in the North-East region in the past few months, information that the US company was unwilling to share earlier. When Startlink said no to India's security agencies India's security agencies have reportedly pointed out the misuse of Starlink devices in Indian territory, especially in the border areas, officials said. However, the Elon Musk-owned company has been reluctant to provide details, directing agencies to use US law enforcement or international protocols. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Spiele kostenlos in deinem Browser - Kein Download oder Installation erforderlich! Taonga Farm Jetzt spielen Undo In March this year, the Ministry of Home Affairs (MHA) reportedly asked the Department of Telecommunications (DoT) to investigate, as Starlink's non-cooperation raised concerns. The DoT has not yet submitted its report, but officials note that with the satcom license, Starlink must comply or risk a show cause notice and potential license revocation. Experts have 'security warning' on Satcom services Experts warn that Starlink services in Bhutan and Bangladesh could lead to smuggled terminals in India due to challenges in geofencing international borders. Security remains a priority, and none of the three satcom licensees -- Starlink, Bharti-backed Eutelsat OneWeb, and Reliance Jio-SES -- have so far received security clearances, delaying commercial operations. While OneWeb and Jio-SES have trial spectrum and have conducted security demonstrations, Starlink, which received its Global Mobile Personal Communication by Satellite permit last week, has not yet been allocated trial airwaves. OneWeb and Jio-SES have had Satcom permits and IN-SPACe approval for over two years, while Starlink awaits regulatory clearance. AI Masterclass for Students. Upskill Young Ones Today!– Join Now


Time of India
38 minutes ago
- Time of India
Explained: China's monopoly on rare earth minerals spooking the world; what does it mean for India & what is it doing?
China's firm grip on rare earths, essential components in the production of phones, automobiles and missiles, is giving a headache to countries world over, including India. (AI image) China's firm grip and worldwide monopoly on rare earth metals, essential components in the production of phones, automobiles and missiles, is giving a headache to countries world over, including India. Despite mounting pressure from countries including the US, EU and India, China remains steadfast in its stance regarding export limitations of these critical rare earths. Recent reports have highlighted increasing worries within the Indian automotive sector regarding the limited availability of rare earth magnets. These components are essential for electric vehicles and certain parts in conventional internal combustion engine vehicles. Furthermore, India's industrial sectors have expressed apprehension over China's decision to restrict rare earth exports, particularly germanium. This plays a vital role in the production of semiconductors, fibre optic cables and solar panels. Critical minerals and metals, including cobalt, copper, lithium, nickel and rare earth elements, are fundamental components in manufacturing environmentally friendly energy solutions, from wind power installations to battery-powered automobiles. What's China's hold on rare earths? China has established control over critical mineral deposits worldwide. Rare earth minerals comprise a collection of 17 metallic elements. While these elements are found across various countries, extracting them is expensive and environmentally damaging, resulting in substantial pollution. The International Energy Agency reports that whilst China produces 61 % of globally mined rare earths, it dominates 92% of worldwide production output. Following Premier Li Qiang's decree implementing export controls on rare earths, China has reportedly intensified these restrictions after US President Donald Trump levied 146% tariffs on Chinese exports. Recently Trump said that Chinese President Xi Jinping has allowed some rare earths to flow to the US. In a recent column in TOI, Tanmay Kumarr Baid & Pranay Kotasthane of Takshashila Institution argued that by restricting shipments, Beijing is lifting prices worldwide and incentivising countries to set up processing elsewhere. 'Once the capital is sunk into new refining in the rest of the world, even a later U‑turn by China cannot quickly claw these customers back,' they said. However, experts Ajit Ranade and Shardul Manurkar believe that China's rare-earth dominance is not a fragile or accidental monopoly, it is a product of deep, deliberate, and sustained strategy. 'Attempts to counter this dominance must acknowledge the scale of the challenge,' they say. Also Read | Move away from China: Shein & Reliance aim selling 'Made in India' clothes abroad; to list India-made clothes on US, UK websites How much does it impact India? The Indian automobile sector continues to face challenges as China maintains restrictions on critical rare earth magnet supplies, even though nine parts manufacturers received endorsements for their import requests from the Chinese embassy. The flow of supplies remains halted, pending approval from China's commerce ministry. These magnets play a crucial role in the production of electric vehicles and are essential for various automotive components, including gear mechanisms and drive trains. The Society of Indian Automobile Manufacturers delivered a presentation to Indian government officials on May 28, urging immediate dialogue between India and China to expedite stalled approvals and simplify the complex procedures. The automotive industry body emphasised the need for bilateral discussions to address these regulatory challenges, according to a Bloomberg report. Saurabh Agarwal, Partner & Automotive Tax Leader, EY India says, 'The recent actions by China have significantly disrupted global supply chains, particularly through their increasing export control over critical commodities. This underscores the urgent need for India, and indeed any nation, to foster a self-sustaining economy. We must prioritize developing our own critical mineral resources and building an end-to-end domestic supply chain, especially as the world shifts towards greater self-reliance. ' 'Given the current trajectory of our growing economy, it's imperative that the government introduces a Production-Linked Incentive (PLI) scheme specifically for rare earth magnets and critical mineral recycling. This will be crucial in the mid-term for establishing a robust domestic supply chain,' he tells TOI. 'In the short run, we must leverage our diplomatic channels to engage with the Chinese government and resolve the immediate challenges around export control licenses. This is essential to prevent production stoppages in our industries,' he adds. Also Read | 'No longer any question..': Donald Trump says China's Xi Jinping has agreed to let rare earth minerals flow to US; sign of thawing tensions What India is doing India is currently negotiating with China regarding the procurement of permanent magnets made from rare earth minerals, whilst simultaneously exploring alternative supply channels for these vital components, according to commerce and industry minister Piyush Goyal. The minister confirmed that the administration maintains regular communication with domestic industry stakeholders to accelerate the development of indigenous sources. "There is a concern... our embassy is in dialogue with them (China)... commerce and industry ministry is also working," Goyal said, adding that the government had already begun work on developing alternate sources. The minister addressed concerns regarding China's halt on permanent magnet exports to India, acknowledging its impact on the automotive sector, white goods and other industries. He mentioned that whilst some companies have submitted applications, they anticipate favourable responses for permanent magnet approvals. Additionally, the government is collaborating with Indian Rare Earths Ltd to accelerate domestic resource development, Goyal stated. When questioned about potential production-linked incentive schemes for magnets, Goyal confirmed discussions with the automotive industry and expressed confidence in finding a solution. He noted that ongoing dialogues with innovators and startups indicate their willingness to support funding requirements and price adjustments necessary to stimulate sector growth and expansion. Also Read | Economy in dire straits, India's Indus Waters Treaty blow: Can Pakistan avoid the 'begging bowl'? Regarding alternative solutions, the minister highlighted potential technological developments within India. Goyal emphasised the collaborative efforts between government, industry, startups and innovators. He acknowledged possible short-term challenges but expressed confidence in achieving success over medium to long-term periods. Goyal recently said that the world must acknowledge the dangers of critical minerals and their supply chains being concentrated in a few geographies, as this concentration could impede economic progress of countries. He said that India has initiated measures, including support for startups conducting research and development, to discover innovative and alternative solutions, he noted. This will help reduce "our over dependence and over reliance on certain critical minerals," Goyal said. Critical minerals like copper, lithium, nickel, cobalt and rare earth elements play a vital role in advancing clean energy technologies. These critical minerals are fundamental components in the manufacturing of wind turbines, electricity networks, electric vehicles and batteries. As countries worldwide accelerate their shift towards clean energy, the requirement for these essential minerals continues to rise. The government's initiative for recycling critical minerals, including copper, lithium, nickel, cobalt and rare earth elements, is approaching its conclusive phase, according to a mines ministry official's statement. The National Critical Mineral Mission (NCMM) has received Rs 1,500 crore in the Union budget for recycling critical minerals, Dinesh Mahur, Joint Secretary in the Mines Ministry has said. The government's earlier approval of the National Critical Mineral Mission, with a budget of Rs 16,300-crore and a total allocation of Rs 34,300 crore distributed across seven years, aims to boost self-sufficiency and expedite India's shift towards green energy. The mission, which seeks to encourage exploration of critical minerals domestically and in offshore regions, anticipates a substantial contribution of Rs 18,000 crore from public sector enterprises. The primary aims of this initiative include enhancing exploration activities, lessening dependence on imports, securing mineral deposits abroad, advancing processing technologies for these crucial minerals and establishing recycling mechanisms. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now


India Gazette
38 minutes ago
- India Gazette
India tests AI-based machine gun
The new weapon can autonomously identify and engage targets in complex mountainous terrain The Indian Army has successfully tested an AI-enabled light machine gun at an altitude of 14,000 feet, military officials said on Monday. The weapon was developed by Indian defense firm BSS Material Ltd., and is based on the AI-powered Negev, a gun originally developed by Israel Weapon Industries. During trials, the gun successfully showcased its capability to autonomously identify and engage targets in complex mountainous terrain, a crucial feature for effective operations in India's rugged and challenging border regions. The weapon's core strength stems from a sophisticated multi-sensor AI module, which enables advanced capabilities such as automatic target detection, friend-foe classification, and real-time engagement, allowing for precise and effective operation, an India Today report said. The system is ideal for applications such as base defense, convoy protection, and perimeter security, particularly in situations where threat levels are consistently high and where troop deployment is challenging or impractical, according to officials cited in the report. The system's primary armament consists of a 7.62 mm medium machine gun, which is mounted on a tripod for stability. The primary weapon can be easily swapped out to accommodate different operational requirements. Additionally, the system is equipped with sensors and technologies, including an optical camera, thermal imager, GPS, magnetometer, inclinometer, and laser rangefinder, according to Indian defense officials. India's defense manufacturing is emerging as a cornerstone of New Delhi's strategic and economic ambitions, and government policies are focusing on modern weaponry which is both designed and manufactured in India, industry experts noted. The Indian military has identified over 5,000 items that must be manufactured in the country rather than rely on imports. Called the positive indigenization list (PIL), the initiative began in 2020 and aims to offer defense items to be indigenized by Indian manufacturers, including small and medium enterprises and startups. In recent years, New Delhi has introduced a range of initiatives and policies aimed at encouraging private sector companies to engage in defense manufacturing, in an effort to boost domestic production and reduce reliance on foreign suppliers. READ MORE: Boosting firepower: India shifts towards private defense manufacturing According to defense ministry data, India aspires to achieve $34 billion in defense production by 2029. (