Vardhaman Textiles Limited has entered into two agreements with Serentica Renewables. The first is a power delivery agreement with Serentica Renewables India 32 Private Limited, a special purpose vehicle (SPV) of Serentica Renewables, while the second is a share subscription-cum-shareholders’ agreement with Serentica Renewables India Private Limited and Serentica Renewables India 32 Private Limited. Under the agreements, Vardhman Textiles Limited will act as the captive user, Serentica Renewables India 32 Private Limited will act as the power producer, and Serentica Renewables India Private Limited will act as the developer.
The agreement aims to develop 40 MW of wind capacity in Karnataka and 40 MWp (30 MW) of solar capacity in Rajasthan. The projects will be connected to the inter-state grid substation together with all assets, related auxiliary materials, land, equipment, power and switchgear, transformers, protection equipment and other items, which will be set up as a captive power project. The projects will supply 27 MW of contracted wind-solar hybrid power to Vardhman’s facilities in Himachal Pradesh.
Additionally, Vardhman Textiles will hold a minimum 26 per cent equity stake in the SPV. Vardhman Textiles Limited will contribute Rs 418.5 million for a minimum 26 per cent stake, while Serentica Renewables India Private Limited will contribute Rs 1,191.1 million for up to a 74 per cent stake.