Hindustan Zinc signs pact with SPV for renewable power supply

New Delhi: Vedanta group firm Hindustan Zinc on Saturday said it has entered into a pact with special purpose vehicle Serentica Renewables India 4 Pvt Ltd for the delivery of renewable power on a long-term basis.

The SPV has been formed in a bid to supply power over a long-term to the company.

The delivery of renewable power would be for a capacity up to 200 mw. This project will be funded on a 70:30 debt-to-equity basis.

In a filing to BSE, HZL said that "26 per cent of equity will be held by company in the Serentica Renewables India 4 Private Limited...The remaining equity in the Serentica Renewables India 4 Private Limited will be held by affiliated companies," the filing said.

The equity infusion will be at par as per investment pact and the tariff rate agreed has been independently benchmarked by a third party with reference to prevailing market tariff for renewable energy power and a cost-plus model prescribed by the Central Electricity Regulatory Commission.

Serentica Renewables India 4 Pvt Ltd will set up captive power projects in different parts of the country according to the suitable location and the SPV will commission the projects with two years of signing the pact.

"The equity infusion of Rs 350 crore in the Serentica Renewables India 4 Private Limited will be made at par, in accordance with the Investment Agreement," the filing said.