Abu Dhabi National Energy Company PJSC (Taqa) has acquired an interest in Himachal Sorang Power Limited (HSPL), the developer of a 100 megawatt (MW) hydroelectric plant in the northern Indian state of Himachal Pradesh.
Construction of the Sorang hydroelectric project is 85 per cent complete and the plant is expected to begin operations in 2013. It will be powered by the Sorang Khad, a river originating in the Himalayas, and will supply electricity to the northern states of India, a region currently facing power shortages. It uses run-of-the-river technology to convert the river's natural water flow to electricity, eliminating the need for a reservoir.
The acquisition was made in a joint venture with Jyoti Structures Ltd. (JSL), an Indian power infrastructure company, which signed a Memorandum of Understanding with Taqa in July 2011 to explore investment opportunities in the sector. Taq already operates a 250 MW lignite power station in the Neyveli region of southern India.
Carl Sheldon, Taqa's Chief Executive Officer, said: "This investment will both complement our existing power generation business in India and support Taqa's nascent renewable energy stream. It also reflects our confidence in the Indian market."
Taqa and JSL have initially bought a minority stake in HSPL, which is a consortium comprising NCC Infrastructure Holdings Ltd. and IL&FS Energy Development Company Ltd. Subject to the satisfaction of certain conditions precedent and compliance with applicable regulatory requirements, Taqa and JSL will progressively acquire 100 per cent of the share capital of HSPL and jointly operate the plant. Taqa will hold a majority stake in the joint venture.
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