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Business Standard
a day ago
- Business
- Business Standard
IndiGrid to acquire 300 MW solar project, transmission asset for ₹2,108 cr
The solar asset, Renew Solar Aayan Private Ltd (RSAPL), is a 300 MW (AC) operational project located in Barmer, Rajasthan, a region known for high solar irradiation Press Trust of India New Delhi IndiGrid on Saturday said it will acquire ReNew Solar Aayan, a 300 MW (AC) solar project, and Koppal Narendra Transmission in two separate transactions for about Rs 2,108 crore. Inclusive of the adjustments, the enterprise value will not exceed Rs 2,175 crore, a statement said. IndiGrid announced the execution of definitive agreements to acquire one solar and one transmission asset, aggregating to an enterprise value of approximately Rs 2,108 crore, excluding any net working capital and cash adjustments, it added. The solar asset, Renew Solar Aayan Private Ltd (RSAPL), is a 300 MW (AC) operational project located in Barmer, Rajasthan, a region known for high solar irradiation. The project has been operational since March 2024 and benefits from a long-term 25-year Power Purchase Agreement (PPA) with Solar Energy Corporation of India (SECI) at a fixed tariff of Rs 2.37 per unit. A 100 per cent subsidiary of ReNew Solar Power Private Limited, RSAPL's proximity to RSUPL an asset acquired by IndiGrid in 2024 offers strong operational synergies and strengthens the platform's presence in the renewable segment. The transmission asset, Koppal Narendra Transmission Limited (KNTL), is a Build-Own-Operate-Maintain (BOOM) Inter-State Transmission System (ISTS) project located in Karnataka. Operational since October 2023, KNTL comprises approximately 276 circuit kilometres of transmission lines and 2,500 MVA of transformation capacity. The asset 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. With its location in a region witnessing rapid grid expansion, KNTL offers meaningful long-term augmentation potential for IndiGrid. Subject to regulatory and contractual approvals, IndiGrid will acquire 100 per cent shareholding and management control of both assets, in line with the provisions of the definitive and concession agreements and the power purchase agreement (PPA), including lock-in obligations therein, it stated. Harsh Shah, Managing Director of IndiGrid, said, "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". This acquisition will be funded through a combination of equity, internal accruals, and debt, the statement said. The net debt/AUM will be 62 per cent post this acquisition, leaving adequate headroom for future growth, it added. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
2 days ago
- Business
- Time of India
IndiGrid to acquire transmission, solar assets for Rs 2,100 cr
IndiGrid on Saturday said it will acquire ReNew Solar Aayan , a 300 MW (AC) solar project, and Koppal Narendra Transmission in two separate transactions for about Rs 2,108 crore. Inclusive of the adjustments, the enterprise value will not exceed Rs 2,175 crore, a statement said. IndiGrid announced the execution of definitive agreements to acquire one solar and one transmission asset , aggregating to an enterprise value of approximately Rs 2,108 crore, excluding any net working capital and cash adjustments, it added. The solar asset, Renew Solar Aayan Private Ltd (RSAPL), is a 300 MW (AC) operational project located in Barmer, Rajasthan, a region known for high solar irradiation. The project has been operational since March 2024 and benefits from a long-term 25-year Power Purchase Agreement (PPA) with Solar Energy Corporation of India (SECI) at a fixed tariff of Rs 2.37 per unit. Live Events A 100 per cent subsidiary of ReNew Solar Power Private Limited, RSAPL's proximity to RSUPL - an asset acquired by IndiGrid in 2024 - offers strong operational synergies and strengthens the platform's presence in the renewable segment. The transmission asset, Koppal Narendra Transmission Limited (KNTL), is a Build-Own-Operate-Maintain (BOOM) Inter-State Transmission System (ISTS) project located in Karnataka. Operational since October 2023, KNTL comprises approximately 276 circuit kilometres of transmission lines and 2,500 MVA of transformation capacity. The asset 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. With its location in a region witnessing rapid grid expansion, KNTL offers meaningful long-term augmentation potential for IndiGrid. Subject to regulatory and contractual approvals, IndiGrid will acquire 100 per cent shareholding and management control of both assets, in line with the provisions of the definitive and concession agreements and the power purchase agreement (PPA), including lock-in obligations therein, it stated. Harsh Shah, Managing Director of IndiGrid, said, "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". This acquisition will be funded through a combination of equity, internal accruals, and debt, the statement said. The net debt/AUM will be 62 per cent post this acquisition, leaving adequate headroom for future growth, it added.
The Hindu
2 days ago
- Business
- The Hindu
IndiGrid to acquire solar, transmission assets for ₹2,108 crore
IndiGrid, a power sector infrastructure investment trust (InvIT), announced the execution of definitive agreements to acquire one solar and one transmission asset, aggregating to an Enterprise Value (EV) of about ₹2,108 crore, excluding any net working capital and cash adjustments. Inclusive of the adjustments the EV will not exceed ₹2,175 crore, IndiGrid said in a statement. The solar asset, Renew Solar Aayan Private Ltd (RSAPL), is a 300 MW (AC) operational project located in Barmer, Rajasthan. The transmission asset, Koppal Narendra Transmission Ltd (KNTL), is a Build-Own-Operate-Maintain (BOOM) Inter-State Transmission System (ISTS) project located in Karnataka. Subject to regulatory and contractual approvals, IndiGrid will acquire 100% shareholding and management control of both assets, in line with the provisions of the definitive and concession agreements and the Power Purchase Agreement (PPA), including lock-in obligations therein. Harsh Shah, Managing Director, IndiGrid, said,' 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. 'RSAPL and KNTL are both high-quality operational assets that deepen our presence in key geographies and enhance our portfolio's diversification and are DPU accretive,' he said. 'As the sector continues to evolve, IndiGrid remains focused on building a future-ready platform that supports the nation's energy ambitions while delivering sustained value to our unitholders,' he added. This acquisition will be funded through a combination of equity, internal accruals, and debt. The net debt/AUM will be 62% post this acquisition, leaving adequate headroom for future growth.
Hindustan Times
08-05-2025
- Business
- Hindustan Times
Over 25,000 buildings in Mumbai Metropolitan Region eligible for redevelopment with ₹30,000 cr value: CREDAI-MCHI
Over 25,000 buildings across the Mumbai Metropolitan Region (MMR) are eligible for redevelopment, with the total estimated project value exceeding ₹30,000 crore, according to a statement issued by real estate developers' apex body CREDAI-MCHI on May 8. The organisation emphasized that unlocking Mumbai's full redevelopment potential requires directly addressing viability issues. "Approval costs in Mumbai stand at ₹55,200 per square metre, significantly higher than ₹1,800 in Pune and ₹5,500 in Delhi. This highlights the disproportionately high development charges in the city," CREDAI-MCHI stated. The apex body was reacting to Bombay High Court's ruling that clarified that GST is not applicable where homeowners appoint a developer to carry out redevelopment work. The legal representatives of CREDAI-MCHI also said that the court merely ruled that GST on development rights is not payable under the reverse charge mechanism—it did not abolish the tax altogether. Also Read: Motilal Nagar Redevelopment: 5 things to know about Adani Group's latest acquisition in the Mumbai real estate market The legal representatives stated that developers remain exposed to legal and financial risk until the GST Council or a larger bench of the High Court gives a conclusive verdict. The Bombay High Court last month clarified that GST is not applicable to developers where homeowners appoint a developer to carry out redevelopment work, provided there is no sale or Transfer of Development Rights (TDR) or Floor Space Index (FSI). The court quashed the tax demand, noting that the agreement was purely for construction and did not involve any transfer of TDR or FSI. Harsh Shah, Partner, Economic Laws Practice (ELP)added, "The confusion around the GST treatment of development rights has resulted in a wave of litigations across the country—with cases pending in Bombay, Delhi, Gujarat, and Karnataka High Courts. The judgment by the Nagpur bench of the Bombay High Court has been misinterpreted in some quarters as a blanket exemption from GST, which is inaccurate." 'A clear and consistent interpretation of GST law, in line with the nature of redevelopment transactions, is essential to restore confidence in the sector,' Shah said. Also Read: Shahrukh Khan's sea-facing building on Mumbai's Carter Road may go in for redevelopment According to Rohit Jain, Deputy Managing Partner, Economic Laws Practice (ELP), "Developers today face up to four layers of GST—5% on sale to customers, 18% on transfer of development rights, 5% on units handed back to existing residents, and non-creditable GST on construction materials." Jain said, "These cascading taxes severely impact margins and slow down redevelopment. It is important to clarify that despite recent high court rulings, GST is still applicable—either under forward or reverse charge mechanisms—and the confusion in interpretation must be addressed urgently. "CREDAI-MCHI, along with several developers, has made detailed representations to the GST Council, and we hope for swift intervention to reclassify development rights as immovable property, which should not attract GST under prevailing laws," Jain said. Also Read: Dharavi Redevelopment: 5 highlights of the master plan and the ongoing survey "When you add layers of GST and regulatory ambiguity to that, projects simply do not take off. Solving these issues is not just about helping developers—it is about providing safer homes to thousands living in dilapidated buildings, improving urban infrastructure, and unlocking housing supply," said Sunny Bijlani, Joint Secretary, CREDAI-MCHI. "Fixing GST interpretation and aligning taxation to ground realities can significantly accelerate redevelopment. These are low-hanging fruits with massive economic and social impact, and we urge decision-makers to act swiftly," Bijlani said. The apex body concluded in the statement that the Bombay High Court judgment is expected to stimulate redevelopment in Mumbai,a city where vertical growth remains the most practical solution amid limited land availability and ageing infrastructure.
Time of India
24-04-2025
- Business
- Time of India
IndiGrid plans to double assets in next 5 years: Harsh Shah, CEO
Mumbai: IndiGrid , India's first publicly listed power sector Infrastructure Investment Trust (InvIT), plans to double its assets in the next five years, its Chief executive officer, Harsh Shah told ETEnergyWorld . 'We are not asset focused, we are returns focused. We would like to do business in which there are returns. We do see currently there are reasonable returns in the business and therefore we are looking to grow. In the next five years, we would like to double assets, which is just another ₹30,000 crore of assets,' he said in an exclusive interaction. He said that they do have plans to grow in solar. However, on diversification, they are very conservative and only do business which they understand. 'Within the sector, I think we understand transmission, solar and battery… At present, we are about ₹30,000 crore in size with almost 22,500 MVA of transformation capacity, 8,700 kilometers of line, one gigawatt of solar generation and about a gigawatt hour of battery projects,' said Shah. The company will continue to operate within the power sector and their asset expansion focus is in transmission – both brownfield and greenfield. 'Greenfield BESS, as brownfield projects aren't there in the market, and brownfield solar, since we are not looking at developing solar on our own,' he said. Indigrid is an energy transition platform, which owns transmission, solar, and battery energy storage assets. 'The company's portfolio level asset mix will be 25-30 per cent solar or renewable. Rest will be in transmission. Following the sectoral guidelines, BESS is categorised as transmission,' he said. On capital requirements, he added that it varies depending on the opportunities as and when they come. 'For us, sources of capital are both debt and equity… As per the regulatory guidelines that govern us, we have a debt to AUM cap of 70 per cent. So that's generally the mix – 70 per cent debt and 30 per cent equity. To ensure we have enough headroom for growth, we always maintain a cushion in our leverage,' he said. He added that as of Q3 end, their leverage was 59.6 per cent , leaving enough growth room. 'Our thumb rule philosophy is to go for a fund raise as soon as we near the 66-67 per cent leverage mark,' said Shah. He added that in India the peak demand is going to increase by 2030 to almost 335 GW, which is about 35 per cent more than what it is today. 'An incremental investment in renewables is going to be higher and therefore, we see that both these directionally push greater investment in transmission, energy storage, and renewable capacity, all three segments where we are very active,' he added. Under the National Electricity Plan, India is looking at over ₹9 lakh crore of investment in transmission, and battery energy storage to setup a capacity of 47 GW which will together enable evacuation of the envisioned 500 GW of renewables. 'We are pretty confident that we will have our own share within such a big ecosystem, especially when the tailwinds are favoring the sector,' he said. On the outlook front, the company is positive and Shah mentions that this is one of the reasons that they have partnered with global investors to form a development company, EnerGrid, where they will take active part in these bids to ensure that they come as an operating asset to Indigrid and their portfolio keeps going up.
