Sembcorp Utilities is a wholly-owned subsidiary of Sembcorp Industries, which will become the sole owner of SGI after the completion of the transaction.
The transaction is anticipated to be completed in the first quarter of 2018.
Sembcorp Industries group president & CEO Neil McGregor said: “The deal will allow us to drive SGI’s growth as the 100% owner, and increase our investment in a wind and solar generation portfolio that strongly complements our thermal power assets in the country.
“Strengthening our investment in renewables will also help us stay abreast of advances in greener power generation, and will enable us to deliver electricity to our customers in an increasingly sustainable manner.”
SGI is one of the major renewable energy players in India, with a presence across seven states. Earlier this year, the comany was awarded 250MW in the country’s first national wind power tender held by the Solar Energy Corp of India.
The 250MW wind project to be built by SGI will be located in Tamil Nadu. The company signed a 25-year power purchasing agreement with Power Trading Corporation which will buy the entire output.
According to Sembcorp, SGI has a portfolio of nearly 1.2GW capacity featuring wind and solar generating facilities in operation and under development.
Sembcorp India CEO & Country Head Vipul Tuli said: “With the far reaching energy reforms and electrification underway in India, there is a demand for both renewable and thermal power in the country.
“Sembcorp’s acquisition of IDFC’s stake in SGI strengthens our position as a reliable provider of clean and low cost power to support India’s growing energy needs.”
Image: SGI was awarded 250MW in India’s wind power tender in April. Photo: Courtesy of moniquef12/FreeImages.com.
