Hindustan Zinc Has Signed A Power Delivery Agreement With Serentica Renewables India

In a regulatory filing with the Bombay Stock Exchange (BSE), Hindustan Zinc revealed that it has signed a power delivery agreement with Serentica Renewables India 4 Pvt Ltd for the long-term delivery of renewable power to the company.

Hindustan Zinc is a subsidiary of the Vedanta group. Serentica Renewables is a Special Purpose Vehicle (SPV) registered and headquartered in Gurgaon that will supply power to the company on a long-term basis. It is also a subsidiary of Sterlite Power Transmission Limited, the Vedanta group's transmission arm.

According to the mining company, renewable energy will be delivered up to a capacity of 200 MW. The debt-to-equity ratio for the project will be 70:30. In the filing, Hindustan Zinc stated that”26 percent of equity will be held by company in the Serentica Renewables India 4 Private Limited will be held by affiliated companies.”

”The equity infusion of Rs 350 crore in the Serentica Renewables India 4 Private Limited will be made at par, in accordance with the Investment Agreement,” Hindustan Zinc added.

The agreed-upon tariff rate was independently benchmarked by a third party using the current market tariff for renewable energy power and the Central Electricity Regulatory Commission's cost-plus model.

Serentica Renewables will develop captive power projects in various parts of India based on suitable locations, according to the terms of the agreement. The RE player will also complete the projects within two years of signing the agreement.