Purvah Green Power, a subsidiary of Kolkata-based power utility Calcutta Electric Supply Corporation (CESC), has won a 150 MW interstate transmission system (ISTS)-connected wind-solar hybrid power project from CESC.

The project comes with an additional 150 MW capacity under the greenshoe option.

The project was awarded as per the guidelines for tariff-based competitive bidding for grid-connected wind-solar hybrid power projects issued by the Ministry of Power.

Purvah will enter a 25-year power purchase agreement with CESC.

As Purvah is a subsidiary of CESC, this project falls under the category of related-party transactions. However, CESC has clarified that the agreement has been executed on an arm’s length basis, ensuring transparency and compliance with regulatory requirements.

CESC is an integrated power utility company, engaged in the generation, transmission, and distribution of electricity. Last August, CESC acquired a 63.91% equity stake in Purvah Green Power at the cost of ₹2.05 billion (~$24.48 million) in August last year. Purvah was a wholly-owned subsidiary of Crescent Power, which is a subsidiary of CESC.

In September 2024, Purvah was selected by CESC to develop 300 MW of ISTS-connected solar power projects across India. Of the total capacity, 150 MW will be developed through tariff-based competitive bidding, while the remaining 150 MW will be executed under a greenshoe option.

Purvah Green Power entered into a binding term sheet to acquire a 100% stake in Bhojraj Renewables Energy to develop a 300 MW wind project and a 150 MW solar project. The acquisition was structured as a cash deal, with Purvah Green committing up to ₹1.08 billion (~$12.86 million). Under the deal, Bhojraj Renewables was to facilitate land acquisition and the necessary permits and approvals for the wind and solar projects. The company has secured an in-principle connectivity approval for the 300 MW wind project.