Bharti Airtel on Sunday said it has entered into an agreement for acquiring 7.04 per cent equity stake in Avaada KNShorapur Private Limited.
Avaada KNShorapur is a special purpose vehicle (SPV) formed for the purpose of owning and operating captive power plant, in terms of the regulatory requirement for captive power consumption under electricity laws.
"...the company has entered into an agreement for acquisition of 7.036 per cent equity stake in Avaada KNShorapur Private Limited," Airtel said in an exchange filing.
Airtel said it would acquire 17,42,650 equity shares of Avaada KNShorapur for Rs 1.74 crore.
The acquisition is to comply with regulatory requirement for captive power plants under the provisions of the Electricity Act, 2003 and the Indian Electricity Rules, 2005, and procurement of cost-effective renewable energy.
"The completion of the acquisition is subject to the receipt of all consents, permissions required to be obtained by Avaada KNShorapur from regulatory authority for open access for captive consumption of electricity," the filing said.
Avaada KNShorapur is an SPV under Avaada Indiclean Private Limited to develop, execute, manage and run up to 10 MW solar power generation plant(s) in Karnataka in accordance with the state government's policy relating to production, supply and distribution of solar energy.
Earlier on Friday, Airtel had said that its data centre subsidiary Nxtra Data Ltd has entered into an agreement to acquire 11.33 per cent equity stake in Avaada KNShorapur for Rs 2.80 crore.
Also Read: Airtel's data centre subsidiary acquires 11.33% stake in Avaada KNShorapur
Also Read: PVR, INOX to merge operations; Ajay Bijli to be MD of new entity