India Grid Trust signed securities purchase agreement on 18 December 2020 for acquisition of 100% in FRV Andhra Pradesh Solar Farm-I and FRV India Solar Park II from FRV Solar Holdings XI.
The acquisition is in line with the IndiGrid investment strategy as provided in the trust deed with a focus to ensure stable distribution to unit holders by owning assets with long term contracts.The acquisition was struck at an enterprise value of around Rs 660 crore and its completion would depend upon receipt of relevant approvals and completion of contractual obligations.
Incorporated on 14 July 2016, FRV I operates 50 MW (AC) solar power plant in Ananthapuramu Solar Park in Andhra Pradesh. FRV I entered into power purchase agreement (PPA) with Solar Energy Corporation of India (SECI) on 5 October 2016 for tenor of 25 years. The asset was commissioned in July 2018. During FY 2019-20, FRV I had total revenue of around Rs 47 crore.
FRV II was incorporated on 9 July 2016 and operates 50 MW (AC) solar power plant in Ananthapuramu Solar Park in Andhra Pradesh. FRV II entered into PPA with SECI on 5 October 2016 for tenor of 25 years. The asset was commissioned in January 2019. During FY 2019-20, FRV II had total revenue of around Rs 50 crore.
India Grid is an infrastructure investment trust (InvIT) established to own inter-state power transmission assets in India. India Grid was established on 21 October 2016 by its sponsor, Sterlite Power Grid Ventures, and is registered with SEBI pursuant to the InvIT Regulations.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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