L&T signs agreement to divest Singoli-Bhatwari Hydroelectric Project

Larsen & Toubro on Wednesday, August 11, 2021, announced the divestment of 100 per cent stake in the 3 x 33 MW (99 MW) run of the river hydroelectric power plant owned by its subsidiary L&T Uttaranchal Hydropower Limited (LTUHPL) to Renew Power Services Private Limited, a wholly-owned subsidiary of Renew Power Private Limited.

This is in line with the declared L&T focus of divesting non-core assets and improving shareholder value. The transaction is subject to completion of customary closing conditions and closing is expected to take place before September 30, 2021. The sale consideration is Rs 985 crore.

"This development is a significant step in our effort to unlock the value of some of our power development assets to streamline and allocate capital to create long term value for our shareholders," said Mr. D K Sen, Whole-time Director, Larsen Et Toubro, describing the sale of the asset. He added, "It represents our strategic effort to increase focus on our core strengths and exit others to move towards becoming a more asset-light organization."

Speaking about the acquisition, Mr. Sumant Sinha, Founder, Chairman, and CEO of ReNew Power, said, "Given that the asset is already operational, the acquisition is not only value accretive for us but also presents a lower level of risk. It strengthens our ability to provide firm and round the clock power to the grid and compliments our solar and wind assets, filling up an important position in our portfolio. We will be looking to acquire more hydro assets in future as they are the best clean balancing sources for intermittent renewable energy.

Larsen & Toubro is an Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services. It operates in over 50 countries worldwide.

ReNew is India's leading renewable energy independent power producer (IPP) by capacity and is the 10th largest global renewable IPP by operational capacity. ReNew develops, builds, owns and operates utility-scale wind energy projects, utility-scale solar energy projects, utility-scale firm power projects, and distributed solar energy projects.

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