The overall agreement provides for the purchase of 580 MW of renewable energy from the plant where Sterlite Power Technologies Private Ltd (SPTPL) and its subsidiaries are building 1,960 MW of hybrid renewable energy capacity.
Vedanta Limited announced on Thursday that its board has approved a proposal to provide 580MW of green power for its operations across India. The company announced the signing of a power delivery agreement with Sterlite Power Technologies Private Ltd, a special purpose vehicle for the supply of solar and wind energy.
“The board has approved plans for the group to supply 580MW of renewable energy for its operations in India,” Vedanta said in a regulatory filing that it had signed a Power Delivery Agreement (PDA) with Sterlite Power Technologies Pvt Ltd.
The miner said it intends to partially replace its existing captive thermal power capacity with renewable energy for smelting and related operations, as well as meet the power needs of the expansion of the capacity of Vedanta Aluminum Limited, Balco in Odisha and Hindustan Zinc in Rajasthan.
The overall agreement provides for the purchase of 580 MW of renewable energy from the plant where Sterlite Power Technologies Private Ltd (SPTPL) and its subsidiaries are building 1,960 MW of hybrid renewable energy capacity.
Once the power is turned on, it has the potential to save around 2.7 million tons of carbon dioxide.
“These projects will be built using a captive group model and the Build-Own-Operate (BOO) method.” The power delivery agreement will be for 25 years from the date of commissioning of the project”, says Vedanta.
The project will be financed on a leverage ratio of 70:30, with Vedanta Ltd and its subsidiaries holding 26% equity stake in the respective SPVs for a total investment of up to Rs 850 crore.
“This agreement is an important step in our journey to become the ESG (environment, social and governance) leader in the natural resources sector. The project is set to become one of the largest hybrid renewable energy projects in India. It demonstrates the group’s commitment to becoming one of the greenest natural resource companies in the world,” said Sunil Duggal, Vedanta’s chief security officer and group CEO.
Show your support for agri-journalism
Dear customer, thank you for being our reader. Readers like you inspire us to move farm journalism forward. We need your support to continue delivering quality agricultural journalism and reaching farmers and people in every corner of rural India.
Every contribution is valuable for our future.
Contribute now
