The solar assets have long term Power Purchase Agreements (PPAs) with various state electricity distribution companies, Essel Group said.
The assets, located in Punjab, Karnataka and Uttar Pradesh, will be acquired by Adani Green Energy. The solar assets have long term Power Purchase Agreements (PPAs) with various state electricity distribution companies, Essel Group said.
ET had reported on August 9 that Essel Group is in the final leg of negotiations with the Adani Group to sell part of its operational solar assets and that an announcement was expected this month. Essel Group’s entire solar energy portfolio consisting of 685 MW of installed and under-construction projects. The company said it is also in talks to sell the additional 480 MW solar assets portfolio.
The deal is part of the divestment process of the Essel Group promoters to reduce debt and pay lenders within the September 30 deadline.
The promoters of Essel Group have a total debt of over Rs 11,000 crore. Last month, they announced the sale of 11% in Zee Entertainment Enterprises to financial investor InvescoOppenheimer Fund for Rs 4,224 crore.
“Our asset divestment process is well within the purview of the agreed timelines with our esteemed lenders,” Essel Group spokesperson said. “The sale of the solar assets to Adani Green Energy is yet another positive step taken in this direction. We have maintained a constant process of identifying the right potential partner for the sale of our precious infra assets and we are extremely glad to sign the agreement with Adani Green Energy. The Group remains focused towards its commitment made to its lenders and is furthermore confident to complete the overall repayment process.”