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L&T Sells Singoli-Bhatwari Hydroelectric Project To Renew Power For Rs 985 Cr

As per the official statement, both parties signed the agreement on August 11 and the sale is likely to be completed on or before September 30.

Photo Credit :

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Indian Multinational company Larsen and Toubro on Wednesday announced that it has sold its whole shareholding in L&T Uttaranchal Hydropower Limited to Renew Power Services Private Limited for Rs 985 crore.

Larsen & Toubro, in a statement, said, "Larsen & Toubro, today announced the divestment of 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 Limited (LTUHPL) to Renew Power Services Private Limited, a wholly owned subsidiary of Renew Power Private Limited. This is in line with the declared L&T focus of divesting non-core assets and improving shareholder value."

As per the official statement, both parties signed the agreement on August 11 and the sale is likely to be completed on or before September 30.

Talking about the development, D K Sen, Whole-time Director, Larsen and 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."

While talking about the sale of the asset, Sen said, "It represents our strategic effort to increase focus on our core strengths and exit others to move towards becoming a more asset-light organization."

Sumant Sinha, Founder, Chairman, and CEO of ReNew Power, 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."

Established in 2011, Renew Power Services Private Limited is a totally owned auxiliary of Renew Power Private Limited. It has an all-out limit of 9.9 Gigabit (GW) and 5.6 GW functional limit expanded across nine states.

Meanwhile, L&T Uttaranchal Hydropower registered total revenue of Rs 21.6 crore in the financial year 2021, and on March 31, its net worth was Rs 843.6 crore.


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