21-May-2024Today's Market Indicators

Vedanta subsidiary enters into PDA with Serentica Renewables India
(14:58, 03 Jun 2023)
Balco has entered into PDA to source 200 MW solar renewable power for its aluminium operations at Chhattisgarh through SPV, Serentica Renewables India

Serentica Renewables India is engaged in the business to supply renewable energy based on solar, wind and battery storage solutions.

SPV will be created for implementation of renewable power projects to cater to long term power supply to BALCO under PDA. This will be helpful in securing continuous supply of power through renewable energy source and insulate Balco's business from commodity market volatility.

The project will be built on captive model and build own operate (BOO) basis. The term of the PDA will be for a period of 25 years from the date of commissioning (COD) of the project. The SPV will be expected to start delivering the power within 24 months from the date of completion of the conditions precedent. The project will be funded on 70:30 debt to equity basis.

BALCO will own 26% of equity in the SPV at a total investment of up to Rs 110 crore for solar renewable power. After commissioning of the projects, electricity tariff will be paid by BALCO to the SPV under this PDA.

SPV will also create captive power projects in different parts of India as per location suitability and provide renewable power to their respective consumers on a long‐term basis.

Vedanta, a subsidiary of Vedanta Resources, is one of the world's leading oil & gas and metal company with significant operations in oil & gas, zinc, lead, silver, copper, iron ore, steel, and aluminium & power across India, South Africa and Namibia.

The company reported 67.56% decline in consolidated net profit of Rs 1,881 crore on 5.38% fall in revenue from operations to Rs 37,225 crore in Q4 FY23 over Q4 FY22.

Th scrip was up 0.74% to end at Rs 280.10 on Friday 3 June 2023.

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