Clean tech giant Suzlon group announced on Wednesday that it has entered into a joint venture with Ostro Energy for development and construction of a 50-mw solar project in Telangana.
According to the contract signed between Ostro Energy and the Suzlon group on Monday, Ostro Energy shall acquire 49 per cent stake in Prathamesh Solarfarms, a special purpose vehicle (SPV) set up by Suzlon to execute this project, the company said in a statement.
Ostro Energy has the option to acquire the balance 51 per cent in future in accordance with relevant rules and regulations. The offtaker of this project will be Telangana Southern Power Distribution Company, the statement said.
Suzlon will be responsible for the project commissioning and also provide comprehensive operation and maintenance services for 25 years.
"The project is expected to be commissioned in financial year 2017 (FY17) and will be funded 75 per cent by debt and 25 per cent by equity," it said.
Suzlon won solar projects of 210 mw in Telangana througha competitive bidding process and the power purchaseagreements (PPAs) for the same were signed in February. Theseinclude one project of 100 mw, one of 50 mw and four projects of 15 mw each.
"With the government's thrust on renewables, this isthe right time for us to foray into solar energy. This JV forour first solar project in Telangana is a significant step forthe company towards a balanced energy portfolio. This isaligned to our vision to be a 1,000 mw renewable energycompany in India by 2018," said Ostro Energy CEO Ranjit Gupta.
"We believe that if India's renewable potential isunlocked, it can transform the country's energy architectureto be dominated by clean energy sources. We look forward toour continuing partnership with Ostro and contributing inthe country?s energy security," said Suzlon Group CEO J P Chalasani.