Bharti Airtel Limited has entered into an agreement for acquiring 7.04 per cent equity stake in Avaada KNShorapur Private Limited.
Airtel has acquired 1,742,650 equity shares of Avaada KNShorapur for Rs 17.4 million. Avaada KNShorapur is a special purpose vehicle (SPV) formed for the purpose of owning and operating captive power plant, in terms of the regulatory requirement for captive power consumption under electricity laws. The acquisition is to comply with regulatory requirement for captive power plants under the provisions of the Electricity Act, 2003 and the Indian Electricity Rules, 2005, and procurement of cost-effective renewable energy. Avaada KNShorapur is an SPV under Avaada Indiclean Private Limited to develop, execute, manage and run up to 10 MW solar power generation plants in Karnataka in accordance with the state government’s policy relating to production, supply and distribution of solar energy