IndiGrid, a leading infrastructure investment trust, announced on Saturday its strategic move to acquire ReNew Solar Aayan, a substantial 300 MW (AC) solar project, and Koppal Narendra Transmission, a critical inter-state transmission asset. These two distinct transactions, valued at approximately ₹2,108 crore, mark a significant expansion of IndiGrid’s presence in India’s rapidly growing renewable energy and power transmission sectors.
This strategic investment underscores a clear commitment to bolstering the nation’s sustainable infrastructure and supporting its transition towards a zero-net carbon future. Inclusive of various adjustments, the total enterprise value of these acquisitions is projected not to exceed ₹2,175 crore. IndiGrid’s execution of definitive agreements to acquire these operational assets signifies a robust expansion strategy that aligns with India’s ambitious targets for clean energy generation and reliable power evacuation. The integration of such assets into IndiGrid’s portfolio is crucial for enhancing grid stability and ensuring wider energy access, fundamental pillars for the development of smart, eco-friendly cities across the country.
The solar asset, ReNew Solar Aayan Private Limited (RSAPL), is an operational 300 MW (AC) project strategically located in Barmer, Rajasthan, a region renowned for its high solar irradiation levels. Having commenced operations in March 2024, the project benefits from a robust and long-term 25-year Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI) at a fixed tariff of ₹2.37 per unit. As a wholly-owned subsidiary of ReNew Solar Power Private Limited, RSAPL’s geographical proximity to RSUPL—another asset successfully acquired by IndiGrid in 2024—offers compelling operational synergies. This co-location not only promises enhanced efficiency through shared resources and management but also significantly strengthens IndiGrid’s overall presence and operational capabilities within the renewable energy segment.
Complementing its solar acquisition, IndiGrid is also acquiring Koppal Narendra Transmission Limited (KNTL), a Build-Own-Operate-Maintain (BOOM) Inter-State Transmission System (ISTS) project situated in Karnataka. This transmission asset, operational since October 2023, is a critical component of the national grid, comprising approximately 276 circuit kilometres of high-voltage transmission lines and 2,500 MVA of transformation capacity. KNTL is jointly owned by ReNew Solar Power Private Limited (51 percent) and KNI India (49 percent), the latter being a joint venture between Norfund and KLP. Positioned in a region undergoing rapid grid expansion, KNTL offers substantial long-term augmentation potential for IndiGrid, providing crucial infrastructure to transmit power from renewable sources to consumption centres.
The successful acquisition of these assets is contingent upon securing the requisite regulatory and contractual approvals. Upon completion, IndiGrid will assume 100 percent shareholding and management control of both RSAPL and KNTL, in strict adherence to the provisions outlined in the definitive and concession agreements, as well as the power purchase agreements, including any stipulated lock-in obligations. Harsh Shah, Managing Director of IndiGrid, articulated the strategic rationale behind these acquisitions, stating, “These acquisitions align with our long-term strategy to participate meaningfully in this transformation by owning and operating essential infrastructure that supports grid stability and energy access.”
The funding for this significant acquisition will be drawn from a strategic blend of equity, internal accruals, and debt. Post-acquisition, IndiGrid’s net debt to Assets Under Management (AUM) ratio is projected to be 62 percent. This carefully managed leverage ratio ensures that the company retains adequate headroom for future growth initiatives and further strategic expansions in the rapidly evolving energy landscape. These investments are pivotal not only for IndiGrid’s financial growth but also for accelerating India’s transition to a clean energy economy, fostering sustainable urbanisation, and contributing to the global movement towards a gender-neutral and equitable energy future where all citizens have reliable access to power.
Also Read: Vijayawada CM Naidu Orders Immediate Water for Delta Crops
