Bharti Airtel acquires 9% stake in Avaada Clean

Bharti Airtel, India’s second-largest telecom operator, has acquired a nine percent stake in renewable energy firm, Avaada Clean TN Project for Rs 7.88 crore in an all-cash deal.

The acquisition of Avaada will require Bharti Airtel to comply with regulatory requirements for captive power plants under the provisions of Electricity Act 2003 and Indian Electricity Rules 2005 and procurement of cost-effective renewable energy, the company said in a regulatory filing.

It will act as a special purpose vehicle formed for the purpose of owning and operating the captive power plant, in terms of the regulatory requirement for captive power consumption under electricity laws, Airtel added.

Avaada is a subsidiary of Avaada Energy Private Limited (formerly known as Giriraj Renewables Private Limited) which is primarily engaged in the business of development and generation of energy and establishing, commissioning, setting up, operating, and maintaining electric power generating stations based on conventional/nonconventional resources and setting up of infrastructure projects on Engineering, Procuring and Constructing (EPC) contract basis.

Bharti Airtel has recently obtained shareholder approval on the issue of preferential shares to Google for about Rs 7,500 crore investment in the company to buy a 1.28 percent stake.

Also, the company has recently invested Rs 2,500 crore to acquire a stake in Indus Tower based on the precondition that the amount paid to Vodafone Plc shall be infused as fresh equity in VIL.

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