Azure Power to invest $12.9m in Premier Energies Group
The two companies also executed a deal for solar cells and modules supply.
Renewable power producer Azure Power entered an agreement to invest around $12.9m (INR1b) in solar cells and modules manufacturer Premier Energies Group.
In a statement, Azure Power said around $5.9m (INR455m) of the amount is allotted for the subscription of equity shares and compulsorily convertible debentures issued by Premier Energies Investment Private Limited (PEIPL), towards a subscription of 26% shareholding in PIEPL.
PEIPL is setting up a one-gigawatt cell and module manufacturing facility in India as part of its expansion plans
The remaining $7m (INR545m) will be for subscription to optionally convertible debentures issued by Premier Energy Limited.
Azure Power also entered into a module supply agreement with Premier Group for a supply of modules of up to 600 megawatts (MW) for the next four years.
"Having a long-term supply visibility is an important factor towards de-risking our business,” Azure Power Chairman Alan Rosling said. “This partnership is a prudent step towards securing long-term sustainable value for our stakeholders and towards the actualization of India's vision of Atmanirbhar Bharat."
Sri Kalvakuntla Taraka Rama Rao, Minister for Municipal Administration & Urban Development, Industries & Commerce, and Information Technology at the Government of Telangana welcomed the investments from Premier Energies and Azure Power.
“We are proud to host their existing state-of-the-art facility in E-City, Telangana and with the new investments, we are con dent that they are going to grow bigger, and we assure our complete support to all our entrepreneurs to reach great heights," he said.
The minister also said that the state government has allotted additional 20 acres of land in the e-city for the expansion plan under the Telangana Mega Projects.