The board of Vedanta Limited has approved plans to source 580 MW of renewable energy for its operations across India.
Vedanta has signed a power delivery agreement with Sterlite Power Technologies Private Limited (SPTPL), a special purpose vehicle (SPV) for supply of solar and wind-based energy.The overall arrangement is to procure 580 MW of renewable power where SPTPL and its affiliates are setting up a 1,960 MW hybrid‐based renewable energy capacity.Once this power supply comes online, it has the potential to prevent about 2.7 mt of greenhouse gas emissions from entering the atmosphere. These projects will be built on a group captive model and build own operate basis. The term of the power delivery agreement will be for a period of 25 years from the date of commissioning of the project. The project will be funded on a 70:30 debt-equity basis. Vedanta Limited and its subsidiaries will own 26 per cent of equity in the respective SPVs at a total investment of up to Rs 8.50 billion.