Diversified business conglomerate Aditya Birla Group has announced that it has partnered with Dubai-based private equity investor Abraaj Group to develop utility-scale solar power plants across various states in India.
Aditya Birla Group will invest in solar power assets through one of its subsidiaries, Aditya Birla Nuvo Limited, (ABNL) whereas Abraaj will invest through one of its affiliates. Under the terms of shareholder’s agreement, Abraaj will hold 49% stake whereas ABNL will hold 51% stake in Aditya Birla Renewables Limited, currently a wholly owned subsidiary of ABNL.
Aditya Birla Renewables Limited, the solar power platform, will bid for upcoming central and state government projects as well as in the private sector with an intention to develop and operate utility-scale solar power plants across various states in India that can provide pollution-free and cost-effective electricity to national grids.
Through this partnership, both the companies are entering the Indian solar market at a time when government is pushing to increase the share of renewable energy, mainly solar and wind energy, through favorable regulatory policies.
Over the last few months, several international firms have announced plans to partner with Indian companies to expand their footprint in the Indian solar energy market. The Indian government plans to have an operational capacity of 100 GW of solar power capacity by 2022.
Abraaj Group is already operating in big markets like Africa, Asia, Latin America, the Middle East and Turkey and is a leading private equity investor managing approximately USD 9 billion of funds.