The two plants have a combined power generation capacity of 1,391MW. With this purchase, TAQA will become the largest private operator of hydroelectric plants in India. The deal will bring TAQA’s combined generating capacity in India to 1,741MW.
The agreement is part of a commitment made by the UAE to invest $2bn in India’s infrastructure sector in February 2013.
TAQA, which holds a 51% stake in the consortium, will have control of operations and management of both facilities under the agreement, while PSP Investments and IDFC Alternatives’ India Infrastructure Fund II will hold the remaining equity of 39% and 10% respectively.
The consortium will also acquire the assets’ non-recourse project debt.
TAQA executive officer and head of global power & water Frank Perez said, "TAQA is pleased to add these two high quality hydro power assets to our growing India business and to support India’s economic growth."
The acquisition, which is subject to regulatory and third party approvals, is expected to close in 2014.
