Vodafone Idea Limited (Vi) has signed agreements to acquire a 26 per cent stake in renewable energy special purpose vehicle (SPV) MTK Quantum Green Energy Private Limited, as part of efforts by the operator to secure cost-effective green power for its operations.
In a regulatory filing, the company said it entered into a power purchase agreement (PPA) and a share purchase agreement for the acquisition of not less than 26 per cent of the paid-up equity share capital in MTK Quantum Green Energy, which is being established to own and operate a captive renewable power plant.
The acquisition is intended to ensure compliance with captive power plant norms under the Electricity Act, 2003 and the Indian Electricity Rules, 2005, while enabling the company to procure renewable energy at lower costs.
Vi will invest Rs 43.3 million in cash to subscribe to the 26 per cent equity stake in the SPV, to be deployed in one or more tranches over an estimated six-month period.
