CLP India, one of the largest foreign investors in the Indian power sector and domestic renewable energy project developer Suzlon have entered a partnership to develop 70 MW of grid-connected solar photovoltaic (PV) capacity.
The firms have announced a joint venture (JV) for two solar PV projects of 50 MW and 20 MW in Dhule, located in the state of Maharashtra. Per the agreement signed between CLP India and Suzlon Group, CLP India has agreed to acquire 49 percent stake in Gale Solarfarms Limited and Tornado Solarfarms Limited, two special purpose vehicles (SPV) set up by Suzlon.
CLP India has the option to acquire the balance 51 percent stake in the future. Suzlon will be responsible for providing comprehensive operation and maintenance services for these projects that are already commissioned.
Mahesh Makhija, Director, Business Development and Commercial (Renewables), at CLP India also commented saying, “Renewable energy has been a key pillar for us in our growth journey. We believe the renewables sector has transformed over the years and introduced several international best practices that have enhanced ease of doing business and encouraged further investments. We believe in the potential growth of the sector and will continue evaluating sustainable projects. We have a long-standing association with Suzlon for both our wind and solar projects. We made our foray into solar energy with them for a 100 MW project in Veltoor. This project was recently awarded world’s first solar project quality certification, having exhibited the highest quality standards. We are confident that we will be able to continue driving operational excellence across all our projects.”
J.P. Chalasani, Group CEO, Suzlon Group said, “We are glad to partner with CLP India for these two solar projects in Maharashtra. We are proud to have also proven our capabilities in solar with the execution of this 70 MW solar standalone project. We have commissioned a total of 340 MW solar projects including this and completed delivery of our entire solar order book.”
This move will be a relief for Suzlon which reported a net loss of ₹5.75 billion (~$83.67million) in the first quarter of FY19, ending June.
Before this quarterly result announcement, Mercom had reported that in its annual financial results for FY18, Suzlon declared a net loss of ₹3.84 billion (~$55.92 million). The consolidated net term debt of Suzlon stood at ₹60.37 billion (~$879.20 million) while its working capital debt has been valued at ₹38.89 billion (~$565.50 million).
In March 2018, Mercom also reported that Suzlon successfully commissioned 340 MW of solar photovoltaic (PV) projects across three states of Maharashtra, Telangana, and Rajasthan.