Drugmaker Cipla invests in Indian solar power

Indian drugmaker Cipla Ltd (BOM:500087) will buy a stake of up to 32.49% on a fully diluted basis in a subsidiary of AMP Energy C&I Pvt Ltd that was created for the purpose of building a captive solar power plant in Maharashtra.

Cipla said in a bourse filing that it signed not only a share subscription and shareholder’s agreement but also a power purchase agreement (PPA). Under the terms of the deal, it will acquire the stake in AMP Energy Green Eleven Pvt Ltd in exchange for a cash payment of up to INR 75 million (USD 1m/EUR 877,000).

Subscribe for Renewables Now's Corporate PPA Newsletter here for free!

No details were given in relation to the PPA.

The pharmaceutical company pointed out that with this stake buy it seeks to increase the share of renewable power in its operation and to comply with the regulatory requirement for being a “captive user” under Indian electricity laws.

(INR 10 = USD 0.134/EUR 0.117)