Board of Linde India approves capex of Rs 28.7 cr for sourcing renewable power

At meeting held on 15 December 2021

The Board of Linde India at its meeting held on 15 December 2021 has approved a proposal for aggregate capital expenditure of Rs.28.7 crore for sourcing of renewable power (solar/wind) for the merchant Air Separation Units owned/operated by Linde India at Taloja (Maharashtra) and Dahej (Gujarat) and the under-construction air separation plant in Sri City (Andhra Pradesh).

In line with the above, Linde India will be entering into joint venture agreements with the identified solar power generating companies through the Special Purpose Vehicles (SPVs) to be set up in due course to qualify as captive consumer of the power.

The Board has approved Linde India's plan to acquire equity in the joint venture SPVs up to a limit of 26% with solar/wind power generators for supply of renewable power to the aforesaid merchant air separation units.

On the formation of the SPVs, the Company will be signing the Power Purchase Agreements and Share Subscription and Shareholder Agreements with them, after which, the Company will acquire the equity in the SPVs as per the approval of the Board as aforesaid.

This will help replace high-cost tariff power from Grid with lower cost and green solar power on a long-term basis.

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