Mitsui to buy 49% stake in Indian solar power system provider
NEW DELHI, NNA - Japanese trading giant Mitsui & Co. will buy a 49 percent stake in an Indian solar power system provider belonging to the conglomerate Mahindra Group in a bid to expand its renewable energy portfolio globally.
Mitsui said Tuesday it has agreed with Mahindra Susten Pvt. Ltd. on the equity acquisition in the latter's subsidiary, Marvel Solren Pvt. Ltd., which has a combined electricity output capacity of 16 megawatts in India.
Mitsui spokesman Ryu Nakakomi in Tokyo declined to comment on the transaction value and the timing of the share purchase.
Marvel Solren deploys rooftop solar power systems on clients' properties for long-term electricity supply ranging from 10 to 25 years, according to Mitsui's statement.
The Indian firm is undertaking four distributed solar power generation projects -- two in the western state of Maharashtra, and one each in the southern states of Karnataka and Telangana, Nakakomi said.
The Japanese trader said the four projects collectively help reduce carbon dioxide emissions by about 20,000 tons per year compared to power generation by an average Indian coal-fired plant, the statement said.
With the help of Mitsui's global power supply network, the two companies aim to expand the Indian firm's output capacity to 150MW by 2023 in line with the government's shift to clean energy in the South Asian country, according to the statement. (NNA/Kyodo)