Larsen & Toubro said on Wednesday that its subsidiary L&T Uttaranchal Hydropower Limited (LTUHPL) has sold a 100 percent ownership in the 3 x 33 MW (99 MW) run of the river hydroelectric power project to Renew Power Services Private Limited, a wholly owned subsidiary of Renew Power Private Limited.
This is consistent with L&T’s stated goal of selling non-core assets and increasing shareholder value. The deal is subject to normal closing conditions being met, and it is scheduled to close by September 30, 2021. The purchase price is Rs.985 crore.
“This is an important milestone in our endeavour to unlock the potential of some of our power development assets in order to streamline and allocate money to produce long-term value for our shareholders,” D K Sen, Whole-time Director, Larsen Et Toubro, said of the asset sale. “It represents our strategic endeavour to enhance focus on our core capabilities while exiting others in order to become a more asset-light business,” says the company.
Larsen & Toubro has bought a hydroelectricity power station in India. ReNew Power said the acquisition is value accretive for the company and presents a lower level of risk. The company plans to buy more hydro energy assets in the future.