L&T Divests 99MW Singoli-Bhatwari Hydroelectric Project to Renew Power for about Rs 985 Cr

Larsen & Toubro has divested a 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 Ltd (LTUHPL) in consideration of Rs 985 crore, to Renew Power Services Pvt Ltd, an arm of Renew Power.

The move is in line with the declared L&T focus of divesting non-core assets and improving shareholder value.

However, the transaction is subject to completion of customary closing conditions, while the closing is expected before September 30, 2021.

Commenting on the sale of the asset, D K Sen, Whole-time Director, Larsen & Toubro, said “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.”

“It represents our strategic effort to increase focus on our core strengths and exit others to move towards becoming a more asset-light organization,” Sen added.

“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,” said Sumant Sinha, Founder, Chairman, and CEO of ReNew Power.