Hindustan Zinc has acquired a 26% stake in a special purpose vehicle, Serentica Renewables India 4, for ₹3.5 billion (~$43 million) and executed a long-term renewable power delivery agreement up to a capacity of 200 MW.

The SPV has been created by Sterlite Power Transmission to implement renewable energy projects to cater to the long-term power requirements of Hindustan Zinc.

Affiliated companies of Hindustan Zinc will hold the remaining equity in the SPV. The project will be funded on a 70:30 debt-to-equity basis, the company said in a BSE filing.

The equity infusion will be at par as per the investment agreement. The tariff agreed upon has been independently benchmarked by a third party with reference to the prevailing market tariff for renewable energy and a cost-plus model prescribed by the Central Electricity Regulatory Commission.

Serentica Renewables will commission the projects within 24 months of signing the PDA.

Hindustan Zinc, a subsidiary of Vedanta Group, is committed to achieving net-zero value-chain emissions before 2050. With a goal of 40% reduction in carbon footprint and carbon neutrality reduction by 2050, the company aims to transition to renewable energy for its entire operations and production of green products of lead and zinc.

Hindustan Zinc approved the proposal to enter into a long-term group captive renewable power development plan of up to 200 MW in April this year.

In May, another Vedanta group company, Vedanta Aluminium announced the long-term sourcing of 380 MW of renewable power for its facilities from affiliates of Sterlite Power Technologies under a power delivery agreement.

Vedanta Aluminium became the largest industrial consumer of renewable energy in 2021 by procuring about 2 billion units of renewable energy for its smelter at Jharsuguda in Odisha. It was a leading procurer of renewable energy on the Green Term-Ahead Market at energy exchange IEX.

The company’s subsidiary, Bharat Aluminium, led the renewable energy trading session at the exchange and procured 59% of the traded renewable energy certificates in November 2021.