Larsen & Toubro on Wednesday announced divestment of 100 per cent stake in 99 megawatt run-of-the-river hydroelectric power plant owned by its subsidiary L&T Uttaranchal Hydropower Ltd (LTUHPL) to Renew Power Services Pvt Ltd.
This is in line with the declared L&T focus of divesting non-core assets and improving shareholder value. The transaction is subject to completion of customary closing conditions and closing is expected to take place before September 30.
The sale consideration is Rs 985 crore, L&T said in a statement.
"This development is a significant step in our effort to unlock the value of some of our power development assets to streamline and allocate capital to create long-term value for our shareholders," said Whole-time Director D K Sen.
"It represents our strategic effort to increase focus on our core strengths and exit others to move towards becoming a more asset-light organisation."
Sumant Sinha, Founder, Chairman and CEO of ReNew Power, said given that the asset is already operational, the acquisition is not only value accretive but also presents a lower level of risk.
"It strengthens our ability to provide firm and round-the-clock power to the grid and compliments our solar and wind assets, filling up an important position in our portfolio."
Sinha said the company will be looking to acquire more hydro assets in future as they are the best clean balancing sources for intermittent renewable energy.
( With inputs from ANI )
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