Torrent power to buy 51% stake in Dadra and Nagar Haveli, Daman and Diu power distribution corporation
The SPV will be responsible for distribution and retail supply of electricity and holds distribution licenses in the Union Territory
Torrent Power Limited has entered into a Share Purchase Agreement (SPA) and Shareholders Agreement (SHA) with Administrator of the Union Territory of Dadra and Nagar Haveli and Daman and Diu (Holding Entity) and Dadra and Nagar Haveli and Daman and Diu Power Distribution Corporation Limited (the SPV) for purchase of 51 per cent Equity Share Capital of the SPV from the Holding Entity.
The SPV will be responsible for distribution and retail supply of electricity and holds distribution licenses in the Union Territory of Dadra and Nagar Haveli and Daman and Diu (DNH & DD).
This acquisition will significantly strengthen Torrent's position as the leading Power Distribution Company in the country with a presence in 12 cities spread across 3 States and 1 Union Territory.
With the addition of DNH & DD, Torrent will distribute nearly 24 billion units of electricity per annum to over 3.85 million customers and cater a peak demand of over 5,000 MW.
Earlier, Torrent Power Limited has, pursuant to Share Purchase Agreement between Torrent Power Limited and CESC Limited, Haldia Energy Limited alongwith nominal shareholders and Surya Vidyut Limited (SPV), completed transaction of acquisition of 100 per cent Equity Share Capital of Surya Vidyut Limited (SPV), wholly owned subsidiary of CESC Limited.
Surya Vidyut operates 156 MW Wind power plants (the Projects), spread across the states of Gujarat, Rajasthan and Madhya Pradesh. Long-term Power Purchase Agreements (PPAs) for the Projects are with respective State Discoms for a period of 25 years, with weighted average PPA tariff of Rs 4.68/ kWh.