Tata Power Sells Stake in South African Wind JV for Rs 643 Crore

Tata Power had announced that its subsidiary has completed the sale of the company’s entire stake in a South African JV for an amount of Rs 643 crore

Tata Power South African JV

Tata Power had announced that Khopoli Investments Ltd, the firms wholly-owned subsidiary, has completed the sale of the company’s entire stake in Cennergi, a South African joint venture (JV) to Exxaro Resources Ltd, for an amount of ZAR 1,550 million (Rs 643 crore) and normal working capital and other adjustments.

Cennergi (Pty) Ltd was a 50:50 joint venture between Khopoli Investments Ltd and Exxaro Resources which is a part of Exxaro, a leading South African coal producer. Exxaro has acquired the entire 50 percent shareholding of Khopoli Investments Ltd. and will now have 100 percent ownership of Cennergi.

The JV owns two wind farms — Amakhala Emoyeni (134.4 MW with 95 percent shareholding) & Tsitsikamma Community Wind Farm (95.3 MW with 75 percent shareholding) — in South Africa. Both projects have a 20-year Power Purchase Agreement (PPA) with the State power utility Eskom.

“The decision to monetise this South African asset is in alignment with our stated strategy to deleverage the Balance Sheet by divesting sub-optimal size international assets,” said Praveer Sinha, CEO & Managing Director, Tata Power. “The proceeds from such sale would be re-invested in emerging areas where there is a huge growth opportunity. The Company will focus on renewable power, power distribution and service-led businesses in India which will bring in greater value and help us align with the emerging consumer needs,” he added.

Recently, we had reported that Tata Power Solar, the renewable arm of utility giant Tata Power, has received a Letter of Award (LoA) from NTPC to develop 300 MW grid-connected solar projects under CPSU Scheme Phase-II. Bangalore-headquartered Tata Power Solar had won this solar photovoltaic (PV) project under the reverse bidding auction held in February at an all-inclusive price of Rs 1,730.16 crore. The project is expected to be commissioned in the time frame of 18 months by September 2021.

The firm announced that post this project win, its order book as India’s largest integrated power company now stood at approximately Rs 8,541 crore including both external and internal orders.

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Ayush Verma

Ayush is a staff writer at saurenergy.com and writes on renewable energy with a special focus on solar and wind. Prior to this, as an engineering graduate trying to find his niche in the energy journalism segment, he worked as a correspondent for iamrenew.com.

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