French multinational energy company Total S.A. (Total) has invested about Rs 3,707 crore, through its step-down subsidiary, to form 50:50 joint venture (JV) with Adani Green Energy Ltd (AGEL), the renewable energy arm of conglomerate Adani Group.
The move came after the regulatory body – the Competition Commission of India (CCI) — has provided its nod for the formation of a JV between the two companies in the power generation business through solar energy in India.
Further, the JV houses 2.148 GW of operating solar projects operating across 11 states in the country.
Also, the portfolio includes Restricted Group 1 & 2 projects, which had recently raised USD 862.5 million from the international bond markets, the company said in a statement.
It further added that the Restricted Group 2 was the first Investment Grade rated issuance (rated BBB-/Baa3/BBB-) by a renewable business in India and was widely recognized by global capital markets and international publications.
With this JV establishment, the two companies aim to adhere to the highest standards of governance and strengthen the foundation of partnership between both the groups.
Meanwhile, the closing of the transaction in the current environment reinforces the strength of the relationship between the partners and further underscores the robust climate commitment of both partners.
Thus, consistent with India’s commitment to renewable energy, sustainable development and UNFCC goals, Adani Group arm said that it is on track to achieve 25 GW of capacity by 2025.
With this, the company also aimed to become the world’s largest solar player by 2025 and the world’s largest renewable energy player by 2030.
In order to support this vision of AGEL, the Group has committed to invest more than 70 per cent of its budgeted Capex into clean energy and energy-efficient systems.
Currently, AGEL is having a current project portfolio of 6 GW including under-construction capacity. Additionally, the company has also participated as a successful bidder in SECI’s 8 GW manufacturing linked tender for the development of the solar project and is awaiting its award.