Hindustan Zinc Ltd signs long term PDA for upto 200 MW capacity

Hindustan Zinc Limited has executed long term renewable Power Delivery Agreement (PDA) upto a capacity of ~200 MW with SPV, namely Serentica Renewables India 4 Private Limited on September 2, 2022.

The SPV, namely Serentica Renewables India 4 Private Limited created on February 18, 2022 for implementation of RE power projects to cater to long term power requirement of Hindustan Zinc Limited ("HZL") under Power Delivery Agreement ("PDA").

26% of equity will be held by Company in the Serentica Renewables India 4 Private Limited created for long term RE power delivery aggregating upto ~200 MW. The remaining equity in the Serentica Renewables India 4 Private Limited will be held by affiliated companies. This project will be funded on a 70:30 debt to equity basis.

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

With an intent to meet ESG goals of the Company and also to secure RE under a Group captive power set up, Serentica Renewables India 4 Private Limited is created to deliver power over a long term period to the Company.

Serentica Renewables India 4 Private Limited will create captive power projects in different parts of India as per location suitability and provide renewable power to the Company on a long-term basis.

It is expected that Serentica Renewables India 4 Private Limited will commission its projects within 24 months of signing the PDA.

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.

Source : Equity Bulls

Keywords

HindustanZinc PowerDeliveryAgreement SPV SerenticaRenewablesIndia4