Hindustan Zinc has acquired a 26 per cent stake in Serentica Renewables India, a special purpose vehicle (SPV) for Rs 3.5 billion. In addition, the company signed a long-term renewable power delivery agreement with a capacity of 200 MW. Sterlite Power Transmission established the SPV to implement renewable energy projects to meet Hindustan Zinc’s long-term power needs. Hindustan Zinc entities will hold the remaining equity in the SPV. The project will be funded with a debt-to equity ratio of 70:30.
A third party independently benchmarked the agreed-upon tariff against the current market tariff for renewable energy and the Central Electricity Regulatory Commission’s cost-plus model. Serentica Renewables plans to start development on the projects within 24 months of signing the project development agreement.
Hindustan Zinc, a Vedanta Group subsidiary aims to achieve net-zero value-chain emissions by the year of 2050. With a goal of reducing its carbon footprint by 40 per cent and reaching carbon neutrality by 2050. The company intends to transition to renewable energy for its entire operations and the production of green lead and zinc products.