Singapore-based Sembcorp Industries subsidiary Sembcorp Green Infra will buy Vector Green Energy for about Rs 2,780 crore (S$474 million), which will help it add 583 MW of renewable assets in India.

Sembcorp Industries said in a statement that it would acquire a stake from India Infrastructure Fund II, managed by Global Infrastructure Partners India.

Vector Green has a footprint in 13 Indian states, independent power producers with renewable energy generation assets. Its portfolio includes 495 MW of solar and 24 MW of wind, with 64 MW of solar projects under development. Including Vector Green, Sembcorp’s renewable energy portfolio in India will total 3 GW, including 1 GW of solar assets and 2 GW of wind assets.

The increase in total renewable energy capacity to 8.5 GW also includes the company’s proposal to acquire 795 MW of solar assets in China, announced in November.

The acquisition of Vector Green Energy’s assets will be financed with internal cash resources and external borrowings and is expected to close in Q1FY23.

Alongside Sembcorp Industries, Torrent Power is also in talks to acquire US private equity firm Global Infrastructure Partners’ clean energy platform Vector Green Energy.

India has an installed renewable energy capacity of 160.92 GW, of which 74.76 GW is under implementation. According to a report by Arthur D Little, India will need about $300 billion in additional investment by 2030 to meet its energy capacity target of 500 GW. The country already has 165 GW of generating capacity and is on the right track to meet its goal of meeting 50% of its energy needs from a renewable energy portfolio.