Solar Assets Of RattanIndia Are Sold For $230 Million

RattanIndia Group became the latest Indian developer to have sold operational solar assets. Global Infrastructure Partners (GIP) have acquired 306 megawatts of solar PV power projects from RattanIndia Group.

The transactions is valued at close to $230 million.

The portfolio includes utility-scale projects totalling 297 megawatts and 9 megawatts of rooftop solar power projects. The large-scale projects are spread across four states — Karnataka, Maharashtra, Uttar Pradesh, and Rajasthan.

These projects have long-term power purchase agreements signed with government-owned companies, like Solar Energy Corporation of India and India’s largest power generator, NTPC.

Group’s Solar assets are not very old and was set up in 2016. It commissioned its first projects in 2017–2018. Tariffs for most of the projects are between Rs 4.50 (US¢6.12) and Rs 5.00 (US¢6.81) per kilowatt-hour.

This is nearly double the tariff rates quoted by project developers in recent solar power tenders.

solar assets

Power purchase agreements with government companies at attractive rates ensures a healthy revenue stream for 25 years.

RattanIndia had secured these projects through competitive auctions. Like many other private power generation companies, RattanIndia is also facing a financial crunch and under current circumstance exiting is the best option.

Reference- Business Standard, Money Control, Economic Times