IndiGrid to Acquire Solar and Transmission Assets Worth INR 2,175 Crore

Entrepreneur

4 hours ago

The acquisitions are expected to be funded through a mix of equity, internal accruals, and debt, with the net debt-to-AUM ratio projected to reach approximately 62 per cent following the transaction
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
India Grid Trust (IndiGrid), one of the country's largest publicly listed infrastructure investment trusts in the power sector, has signed definitive agreements to acquire two operational energy assets for a combined enterprise value of up to INR 2,175 crore, including adjustments. The announcement was made through a press release issued by the company.
The acquisition includes a 300 MW solar power project and a high-capacity transmission system, both already in operation. The move is part of IndiGrid's ongoing strategy to expand its footprint in the renewable energy and transmission segments while strengthening its asset base across key regions.
The solar asset, Renew Solar Aayan Private Limited (RSAPL), is situated in Barmer, Rajasthan, an area known for strong solar irradiation. Operational since March 2024, RSAPL is backed by a 25-year power purchase agreement with the Solar Energy Corporation of India (SECI), offering a fixed tariff of INR 2.37 per unit. The project is a wholly owned subsidiary of ReNew Solar Power Private Limited and sits in close proximity to another IndiGrid-owned project, RSUPL, enabling operational synergies and enhanced regional presence in renewables.
The second acquisition, Koppal Narendra Transmission Limited (KNTL), is a build-own-operate-maintain (BOOM) inter-state transmission system project in Karnataka. Commissioned in October 2023, it consists of about 276 circuit kilometers of transmission lines and a transformation capacity of around 2,500 MVA. KNTL is jointly owned by ReNew Solar Power Private Limited (51 per cent) and KNI India (49 per cent), a joint venture between Norfund and KLP. Its strategic location supports long-term grid expansion in the rapidly growing southern region.
Pending necessary regulatory and contractual approvals, IndiGrid will assume full ownership and management control of both assets. The acquisitions are expected to be funded through a mix of equity, internal accruals, and debt, with the net debt-to-AUM ratio projected to reach approximately 62 per cent following the transaction—still within comfortable limits for future investments.
"India's power sector is at a pivotal juncture, with the need for robust transmission infrastructure and accelerated renewable integration becoming more critical than ever," said Harsh Shah, managing director of IndiGrid. "These acquisitions align with our long-term strategy to participate meaningfully in this transformation by owning and operating essential infrastructure that supports grid stability and energy access."