The CK Birla Group cement company announced in an exchange filing that it has entered into an agreement with Cleantech Solar via a special purpose vehicle (SPV) Ardeur Renewables Pvt Ltd. The proposal received in-principle approval by the company’s Board of Directors in a meeting on April 28. 

Orient Cement has entered a Share Subscription and Shareholders’ Agreement (SSSHA) with Cleantech Solar India OA 2 Pte Ltd and Ardeur Renewables Pvt Ltd to acquire a 28.52% stake in the SPV. 

The acquisition was done via subscription in the share capital through equity shares for an approximate deal value of Rs 9.50 crore and is expected to be completed within 7 months. As mentioned in the filing, the objective behind the acquisition is to meet the green energy needs and optimise energy costs.

Cleantech Solar develops and operates renewable energy infrastructure for supplying electrical power generated using solar energy and other renewable energy sources to commercial and industrial customers.

Ardeur Renewables, a wholly-owned step-down subsidiary of Cleantech Solar, was incorporated to set up a solar power plant with a capacity of 16 MW under defined conditions (MWdc) at Orient Cement’s Chittapur plant in Karnataka and another one with a capacity of 5.5 MWdc for the Jalgaon plant in Maharashtra under Captive Scheme.

The projects will follow the terms of the regulatory requirement for captive power consumption under electricity laws.