Image Source: Shrutuja Shirke, CC BY-SA 3.0, via Wikimedia Commons
Bharti Airtel Limited has announced a significant strategic move in the power sector, disclosing the acquisition of a minority stake in a dedicated Special Purpose Vehicle (SPV) aimed at ensuring captive power consumption compliance and securing cost-effective renewable energy.
Nxtra Data Limited, a subsidiary of Bharti Airtel Limited, has entered into an agreement to acquire 51,92,000 equity shares, representing a 35% shareholding/control in AMPIN Energy C&I Sixteen Private Limited.
The transaction, executed through cash consideration, amounts to INR 5,19,20,000 in aggregate .
The acquisition falls squarely within the power sector and is driven primarily by regulatory needs. The stated objects include complying with the regulatory requirement for captive power plants as mandated under the provisions of the Electricity Act, 2003, and the Indian Electricity Rules, 2005.
Furthermore, the deal is set to aid Nxtra Data Limited in the procurement of cost-effective renewable energy.
AMPIN Energy C&I Sixteen, the target entity, is an SPV incorporated on March 18, 2023. It was established by AMPIN C&I Private Limited specifically for developing, constructing, operating, and maintaining a 13.2 MW solar power plant. This facility is located at Village: Dighol-Islamnpur, District: Parbani, in the state of Maharashtra.
Crucially for Nxtra Data Limited, the solar power plant will connect at a 132 KV sub-station and is designed to supply green power to the subsidiary through an intrastate network.
The project is projected to become operational by the Q4 of the Financial Year 2025-26.
Bharti Airtel clarified that the acquisition does not fall within the purview of ‘related party transactions’.
The completion of the acquisition is subject to the receipt of necessary consents and permissions required by AMPIN Energy C&I Sixteen from regulatory authorities, including approvals for open access for captive consumption of electricity, as well as Grid Connectivity Approval and Open Access Approval cum WBA.
The disclosure was signed by Rohit Krishan Puri, Joint Company Secretary & Compliance Officer, For Bharti Airtel Limited.
This disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
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