Mahindra & Mahindra has announced that it has signed a power purchase agreement with ReNew Sunlight Energy, a subsidiary of ReNew Green Energy Solutions to procure solar power from its open-access project. The solar project has a capacity of 43 MW and is located in the Parbhani district in the Marathwada region of Maharashtra. It is expected to be commissioned by the end of the current year. Under the deal, Mahindra and Mahindra have acquired 31.2 per cent equity shares through the subscription of 16.07 million shares valued at Rs 10 each.
As per the agreement, ReNew Sunlight will build, own, and operate the 43 MW open-access project while Mahindra’s manufacturing facility in Maharashtra will utilize the power. The project is expected to generate around 100 MU of solar power annually to supply power to Mahindra. Even though the project is built under the group captive model, Mahindra will be the only consumer.
Early this year, ReNew Power announced the signing of a business combination agreement with RMG Acquisition Corporation II, a special purpose acquisition company, to become a public company. Once the company goes public, it plans to build a pipeline of around 18-19 GW of renewable capacity by the end of the financial year 2025.