Essel Infra to sell solar assets to Adani Green Energy for Rs 1,300 crore

Essel Infra has inked a pact with Adani Green Energy (AGEL) to sell 205 megawatt (Mw) of solar assets for Rs 1,300 crore, the company said on Thursday.  

The assets are located in Punjab, Karnataka, and Uttar Pradesh. All these assets have long-term power purchase agreements with various state electricity distribution companies, the company said.

“Our asset divestment process is within the purview of the agreed timelines with our esteemed lenders. The sale of the group’s solar assets to AGEL is yet another positive step taken in this direction,” an Essel group spokesperson said. 

Adani Green called this its first acquisition of operating assets. “The acquisition of 205 Mw of operating solar assets strengthens Adani Green Energy’s position as one of India’s premier renewable power producers, with a total portfolio of 5.5 gigawatt (Gw), of which 2.5 Gw is operational, and the remaining is to be operationalised over the next two years,” said Jayant Parimal, chief executive officer for Adani Green Energy. Post completion of this deal, Essel will operate a portfolio of 480 Mw solar assets. “The group is working towards arriving at a closure on the divestment of the additional 480 Mw solar assets portfolio,” the firm said. 

The sale of solar assets is expected to further reduce promoter debt for the group, which was at Rs 6,776 crore. In July, Essel said it had offloaded 11 per cent of the nearly 36 per cent promoter stake in Zee Entertainment Enterprises to existing investor Invesco Oppenheimer for Rs 4,224 crore.