hindustan zinc share price: Hindustan Zinc to invest Rs 350 crore for 26% stake in Serentica Renewables

NEW DELHI: On Saturday announced that it signed a long-term Renewable Energy Delivery Agreement (PDA) up to 200MW capacity with SPV, namely Serentica Renewables India 4 Private Limited on September 2.

The company will invest Rs 350 crore for a 26% stake in the special purpose vehicle (SPV) which was established on February 18 for the implementation of renewable energy projects, meeting the long-term energy needs of Hindustan Zinc on PDA.

A total of 26% equity will be held by Hindustan Zinc in Serentica Renewables, while the rest of the equity will be held by affiliated companies. The project will be financed on a 70:30 debt-to-equity basis, the company said in a BSE filing.

“The capital injection will be at par in accordance with the investment agreement and the agreed tariff rate has been independently benchmarked by a third party with reference to the prevailing market tariff for renewable energy and a prescribed cost-plus model by the Central Electricity Regulatory Commission,” the company said.

Hindustan Zinc said the company intends to secure renewable energy under a group captive energy setup and that Serentica Renewables India 4 Private Limited is set up to supply long-term electricity to the society.

The SPV will create captive energy projects in different parts of India depending on the suitability of the location and provide renewable energy to the company for the long term.

“It is expected that Serentica Renewables India 4 Private Limited will commission its projects within 24 months of signing the PDA,” said Hindustan Zinc, adding that all required approvals, if any, will be made.

sought.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts belong to them. These do not represent the views of Economic Times)

Richard L. Militello