Vedanta arm Balco signs pact with SRIPL to source hybrid renewable power

BALCO has entered into an agreement with Serentica Renewables India Private Ltd (SRIPL) to set up a special purpose vehicle to source hybrid renewable power for its aluminium operations in Chhattisgarh.

Bharat Aluminium Company Ltd (BALCO) is a subsidiary of mining major Vedanta Ltd.

"BALCO has entered into a Power Delivery Agreement (PDA) to source 105 MW hybrid renewable power for its aluminium operations at Chhattisgarh, through Special Purpose Vehicle (SPV) i.e. affiliates of SRIPL," Vedanta said in a regulatory filing.

The project will be funded on a 70:30 debt to equity basis and BALCO will own 26 per cent equity in the SPV.

The hybrid energy project will be built on a captive model and build own operate basis. The term of the PDA will be for a period of 25 years from the date of commissioning of the project.

The SPV is expected to start delivering the power within 24 months of the PDA signing.

This will be helpful in securing continuous supply of power through renewable energy sources for aluminium business, Vedanta said.