As per the agreement, CLP India has agreed to acquire 49 per cent equity stake in two special purpose vehicles (SPVs) viz. Gale Solarfarms Private Limited and Tornado Solarfarms Private Limited set up by Suzlon.
As first part of the transaction, CLP would acquire stake in Gale and Tornado for a cash consideration of Rs 234.9 million and Rs 155.7 million respectively. As second part of the transaction, CLP has the option to acquire the balance 51 per cent stake in Gale and Tornado respectively from the company one year after commercial operations date, as permissible under the PPA, at a value derived as per the then prevailing pricing guidelines.
SEL has implemented the project in two phases – Phase I of 50 MW and Phase II of 20 MW. In 2015, bids for the development of 500 MW solar power capacity were invited by SECI in Maharashtra. Of the total capacity, 70 MW project was awarded to SEL. Besides, in April 2016, SEL acquired five small solar companies which acted as SPVs to implement the project. These five companies were: Gale Solarfarms, Tornado Solarfarms, Abha Solarfarms Private Limited, Aalok Solarfarms Private Limited and Shreyas Solarfarms Private Limited.