Vedanta Group authorises equity investment for 691 MW renewable energy projects

The Board of Directors of Vedanta Group has approved the procurement of 691 MW of renewable energy to power the company’s aluminium, copper, and oil and gas operations across India.

The company will obtain 91 MW of hybrid renewable energy, which includes 50 MW for aluminium operations, 16 MW for copper operations, and 25 MW for oil and gas operations; and 600 MW of solar energy for aluminium operations. To implement these renewable energy projects for long-term power supply to its operations, Vedanta will create special purpose vehicles (SPVs) with Serentica Renewables India Private Limited. Vedanta Limited and its subsidiaries will own 26 per cent of the equity in the respective SPVs, with Serentica Renewables India owning the rest. The renewable energy projects will be built on captive model and build-own-operate basis. The project will be funded with a debt-to-equity ratio of 70:30. Vedanta’s consuming units will pay electricity tariffs to the respective SPV following project completion under long-term power delivery agreements (PDA) signed with them. The term of the PDA will be for a period of 25 years from the date of commissioning of the project. The SPVs are expected to start delivering the power within 24 months of the PDA signing