IndiGrid, India’s pioneering Infrastructure Investment Trust (InvIT) in the power sector, announced a significant strategic expansion on Saturday with the acquisition of two key assets: a 300 MW (AC) solar project, ReNew Solar Aayan, and Koppal Narendra Transmission. These two distinct transactions, totaling approximately ₹2,108 crore, with a maximum enterprise value not exceeding ₹2,175 crore including adjustments, underscore IndiGrid’s unwavering commitment to bolstering India’s renewable energy capacity and grid infrastructure.
This pivotal move aligns with the nation’s ambitious goals for a zero-net carbon future and sustainable urban development. The first acquired asset, ReNew Solar Aayan Private Ltd (RSAPL), is an operational 300 MW (AC) solar facility strategically located in Barmer, Rajasthan, a region renowned for its high solar energy potential. Having commenced power generation in March 2024, the project benefits from a robust 25-year Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI) at a fixed tariff of ₹2.37 per unit. RSAPL is a wholly owned subsidiary of ReNew Solar Power Private Limited. Its proximity to another asset acquired by IndiGrid in 2024 offers compelling operational synergies, further cementing IndiGrid’s leadership in the rapidly expanding renewable energy sector and contributing directly to India’s clean energy transition.
The second significant acquisition, Koppal Narendra Transmission Limited (KNTL), is a Build-Own-Operate-Maintain (BOOM) Inter-State Transmission System (ISTS) situated in Karnataka. This vital transmission project, operational since October 2023, comprises 276 circuit kilometres of transmission lines and an impressive 2,500 MVA of transformation capacity. KNTL operates as a joint venture between ReNew Solar Power Private Limited (51%) and KNI India (49%), the latter being a partnership involving Norfund and KLP. Located within an area experiencing rapid expansion of grid infrastructure, KNTL presents substantial long-term growth potential for IndiGrid, crucial for ensuring grid stability and reliable power delivery across regions.
IndiGrid will assume full ownership and management control of both the solar and transmission assets, subject to the necessary regulatory and contractual approvals. This acquisition strategy aligns meticulously with the provisions of definitive and concession agreements, as well as the terms stipulated in the PPA and any existing lock-in obligations. This meticulous adherence to regulatory frameworks ensures a smooth transition and robust governance for the newly integrated assets.
Harsh Shah, Managing Director of IndiGrid, articulated the strategic rationale behind these acquisitions, stating, “These acquisitions are in line with our long-term strategy to invest in and operate critical infrastructure that supports grid stability and energy accessibility.” The financial structure of the transaction will involve a blend of equity, internal funds, and debt. Post-acquisition, IndiGrid’s net debt to assets under management (AUM) ratio is projected to stand at a healthy 62%, providing ample financial flexibility for future expansion and strategic investments.
IndiGrid, as India’s first Infrastructure Investment Trust in the power sector, has been a trailblazer in pioneering a new model of infrastructure investment. Its diversified portfolio now encompasses 41 power assets, including approximately 49 transmission lines spanning over 8,700 circuit kilometres, and 15 substations with a combined transformation capacity of about 22,550 MVA. Beyond its robust transmission infrastructure, IndiGrid has significantly diversified into clean energy, boasting approximately 855 MWAC (~1.1 GWp) of solar power capacity and 450 MW / 900 MWh of Battery Energy Storage Systems (BESS).
With Assets Under Management (AUM) now exceeding ₹294 billion (approximately USD 3.4 billion), IndiGrid plays an indispensable role in strengthening India’s energy infrastructure and facilitating the nation’s transition towards a more sustainable power ecosystem. Its strategically located and diverse assets are instrumental in enhancing grid stability and ensuring energy accessibility across various regions, contributing to the development of eco-friendly, gender-neutral, and equitable cities powered by clean energy. The institutional strength of IndiGrid is further bolstered by its investment manager, a wholly owned subsidiary of global investment firm KKR, reinforcing its long-term growth trajectory in India’s dynamic energy landscape.
Also Read: Mangalagiri Rs 450 Cr Water Scheme Approved for Sustainable Future
