Suzlon Group today announced joint venture with Ostro Energy for the development and construction of a 50MW solar project at Wanaparthy site, Telangana.
According to the contract signed between Ostro Energy and Suzlon Group on 24th October 2016, Ostro Energy shall acquire 49% stake in Prathamesh Solarfarms Limited, a special purpose vehicle (SPV) set-up by Suzlon for executing this project. Ostro Energy has the option to acquire the balance 51% in future in accordance with the relevant rules and regulations. The offtaker of this project will be Telangana Southern Power Distribution Company Limited. Suzlon will be responsible for the project commissioning and will also provide comprehensive operation and maintenance services for a period of 25 years. The project is expected to be commissioned in financial year 2017 (FY17) and will be funded 75% by debt and 25% by equity.
Ranjit Gupta, CEO, Ostro Energy, said,"With the government's thrust on renewables and the target to build 100GW of solar energy projects by 2022, this is the right time for us to foray into solar energy. This joint venture for our first solar project in Telangana is a significant step for the company towards a balanced energy portfolio. This is aligned to our vision to be a 1000MW renewable energy company in India by 2018."
J.P. Chalasani, Group CEO, Suzlon Group, said,"Today, renewable energy sector is witnessing a positive momentum. The sector is committed to provide sustainable and affordable energy for all. We believe if India's renewable potential is unlocked, it can transform the country's energy architecture to be dominated by clean energy sources. We look forward to our continuing partnership with Ostro and thereby contributing in the country's energy security."