Aditya Birla partners Dubai's Abraaj Group for solar plants

New Delhi: Aditya Birla Group, a USD 41 billion conglomerate, on Wednesday announced its partnership with Dubai-based private equity firm Abraaj Group for jointly investing in building and operating new solar power plants in India.

The two will build a gigawatt scale platform and Aditya Birla Renewables Ltd will bid for new solar projects tendered at national and state auctions. The Indian group will hold 51 per cent stake in the venture while Abraaj will control the remaining 49 per cent.

"The Aditya Birla Group will invest in the platform through Aditya Birla Nuvo Ltd and Abraaj will invest through one of its affiliates," the company said in a statement here.

It, however, did not give details of the investment planned.

"ABNL has entered into a definitive Share Subscription and Shareholders Agreement (SSA) with an affiliate of Abraaj.

"In accordance with the SSA, subject to the customary closing conditions and subject to the requisite approvals, ABNL and the Abraaj affiliate will hold 51 per cent and 49 per cent of the paid up share capital respectively, in Aditya Birla Renewables Ltd, currently a wholly owned subsidiary of ABNL," the statement said.

Aditya Birla Renewables Limited, the solar power platform, will bid for projects tendered at national and state auctions, with the intent to develop and operate utility-scale solar power plants that can provide clean and cost-effective electricity to the national grids across several key states in India.

Commenting on the partnership, Dev Bhattacharya, Business Head - Group Corporate Strategy, Solar Power & E-Commerce, Aditya Birla Group, said, "The Aditya Birla Group supports the Government of India's initiative for a greater share of renewables in the energy mix, essential for sustained economic and industrial growth."

This cooperation will give a fillip to the Aditya Birla Group's renewable energy initiatives and contribute to reducing the carbon footprint of India as a whole," he said.

Sev Vettivetpillai, Partner and Global Head of Abraaj's Thematic Funds Business, said, "The gap in energy infrastructure in growth markets translates into a long-term and sustainable investment opportunity."

Renewable energy, he said, is set for explosive growth, thanks to technological advances, favorable policies and pricing structures, that make it a competitive alternative to conventional power generation.

"At Abraaj, we see significant opportunity in India, one of the world?s biggest energy consumption markets," he said.

The Aditya Birla Group was advised on the transaction by Greenstone Energy Advisors.