First Solar India, the Indian arm of the US-based solar photovoltaic module major, has struck a deal to divest 190 MW of solar power assets in the country to IDFC Alternatives.

These projects, located in Andhra Pradesh and Telangana, have been executed by the company as an independent power producer.

Apart from being a major supplier of modules to the solar projects in the domestic market, the US company develops projects and later divests them across different geographies.

Subject to customary regulatory approvals, First Solar Power India Pvt Ltd has entered an agreement with India Infrastructure Fund II, which is represented by its Investment Manager, IDFC Alternatives Ltd, to divest seven operating solar projects owned and operated by First Solar in the states of Andhra Pradesh and Telangana, aggregating to a capacity of 190 MW.

First Solar India Country Head- Sujoy Ghosh said: “This is an important milestone for our company’s development activities in India. We are able to demonstrate the ability to recycle capital, by creating a portfolio of de-risked assets, utilising the reliable and superior field performance of First Solar’s CdTe thin Film PV module technology, that delivers predictable and reliable cash flows and, thereby, creates value for sophisticated financial investors such as IDFC Alternatives.”

in a recent interaction, Ghosh spoke of the need to churn assets to focus on new projects. He predicted there would be accelerated M&A activity in a healthy market with big potential.

The value of the transaction is not yet known.