Suzlon, a wind turbine manufacturer and renewable energy project developer, has entered into a joint venture (JV) with AMP Solar, a global renewable power provider, to develop and construct a 15 MW solar project at Achampet in Telangana. The project is expected to be commissioned in the financial year 2017. AMP Solar will acquire a 49 percent stake in Rudra Solarfarms, a special purpose vehicle (SPV) built by Suzlon to execute this project for a cash consideration of Rs.140 million (~$2.06 million), and has the option to acquire the remaining 51 percent stake a year after the project is commissioned.

Suzlon will be responsible for project commissioning and operation & maintenance (O&M) services for a period of 25 years. The company signed a power purchase agreement with Telangana Southern Power Distribution Company for a 25-year period at a tariff of Rs.5.599 (~$0.082)/kWh in February 2016.

With the formation of the JV with AMP Solar, Suzlon, to date, has formed joint ventures to develop and construct the entire 210 MW capacity for which it had won bids in Telangana.

“The Indian renewables market is booming and this will be beneficial for our investors and shareholders,” said Pinaki Bhattacharya, CEO, AMP Solar (India), on the eve of the JV formation.

Mercom had previously reported that Suzlon had formed JVs with CLP India, Unisun Energy, Canadian Solar and Ostro Energy to develop and construct projects aggregating 195 MW in Telangana.

According to Mercom’s India Solar Project Tracker, Suzlon currently has 515 MW solar projects under development at an average tariff of Rs.5.36 (~$0.0803)/kWh. The company does not have any operational solar projects, to date.