Renewable power producer Azure Power Global plans to invest ₹ 100 crore ($12.9 million) in solar cell and module manufacturer Premier Energies Group.
Besides an agreement on the investment, the two entities also executed a module supply agreement under which Premier will supply 2.4 GW of solar cells and modules over the next four years, having an estimated order value of ₹ 4,000 crore to Azure.
Elaborating on the investment, Azure said it has invested ₹ 45.5 crore ($5.9 million) towards subscription of 26% equity shares and compulsorily convertible debentures issued by Premier Energies Investment Private Limited (PEIPL). The balance ₹ 54.5 crore ($7 million) investment will be made in the form of subscription to optionally convertible debentures issued by Premier Energy Limited (PEL).
Describing it as a strategic alliance, Premier Energies in a release said Premier and Azure together have invested ₹ 700 crore to setup a state-of-the-art 1.25 GW solar cell and 1.25 GW solar module facility built in Telangana as part of expansion plans. This facility will have potential to create employment in excess of 1,000 jobs directly and help augment ancillary industry creating local employment in excess of 2,000 jobs.
In addition to this, Azure has invested ₹ 630 crore in Telangana and operates 128 MW solar power projects in the State, Premier said.
Industries and IT Minister K.T. Rama Rao, in whose presence the Premier and Azure leadership entered into the strategic alliance, said the State government has allotted additional 20 acres in E-city for the expansion project under Telangana Mega Projects. “Government of Telangana appreciates the repeat investment from Premier Energies and Azure Power. We are proud to host their existing state-of-the-art facility in E-City, Telangana... assure our complete support to all our entrepreneurs to reach great heights.”
“Having a long-term supply visibility is an important factor towards de-risking our business,” Azure Power Chairman Alan Rosling said. Premier Energies Managing Director Chiranjeev Saluja said “this is the first of its kind strategic partnership between independent power producer and solar manufacturing company in India.”
