Larsen & Toubro (L&T) has agreed to sell its 100% stake in the 99MW Singoli Bhatwari hydroelectric project in Uttarakhand to Renew Power Private Limited for INR 985 crores.

The run of the river hydroelectric power plant is owned by Larsen & Toubro’s subsidiary L&T Uttaranchal Hydropower Limited (LTUHPL). Its acquirer will be Renew Power’s subsidiary Renew Power Services Private Limited.

The Singoli Bhatwari hydroelectric project is made up of three units, each of 33MW. It has been built on Mandakini River, the right bank tributary of River Alaknanda River, in Garhwal, Rudraprayag district.

Sumant Sinha — Founder, Chairman, and CEO of ReNew Power, commenting on the acquisition of the Singoli Bhatwari project, 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 said that the sale aligns with its focus on offloading non-core assets and enhancing shareholder value.

The deal, which is subject to customary closing conditions, is expected to be wrapped up by 30 September 2021.

Commenting on the acquisition of the Singoli Bhatwari hydropower project, D K Sen — Whole-time Director at 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.”

  Garhwal, Hydropower project, India, L&T Uttaranchal Hydropower Limited, Larsen & Toubro, ReNew Power, Renew Power Private Limited, Renew Power Services Private Limited, Rudraprayag, Singoli Bhatwari hydropower project, Sumant Sinha, Uttarakhand