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Hindustan Zinc would purchase up to 200 MW of renewable energy
Hindustan Zinc has signed a long-term renewable power delivery deal with a capacity of 200 MW and purchased a 26% stake in Serentica Renewables India 4, a special purpose entity, for Rs 3.5 billion.
The SPV was established by Sterlite Electricity Transmission to carry out renewable energy projects in order to meet Hindustan Zinc's long-term power needs.
The remainder of the shares in the SPV will be held by affiliated businesses of Hindustan Zinc. The project will be financed at a debt-to-equity ratio of 70:30.
According to the investment agreement, the equity investment will be equal. The agreed-upon pricing has been independently benchmarked by a third party using a cost-plus methodology recommended by the Central Electricity Regulatory Commission and the current market tariff for renewable energy.
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