Qatar Investment Authority has agreed to buy a 25.1 per cent stake in Adani Electricity Mumbai Ltd - the firm that distributes power to three million consumers in Mumbai - for Rs 3,200 crore.
Adani Electricity Mumbai Ltd is a part of Adani Transmission Ltd, while Qatar Investment Authority (QIA) is the sovereign wealth fund of the Qatar.
"Adani Transmission Limited (ATL), Adani Electricity Mumbai Ltd (AEML) and a subsidiary of Qatar Investment Authority (QIA) have signed definitive agreements for the sale of a 25.1 per cent stake in AEML to QIA and for a shareholder subordinated debt investment by QIA in AEML.
"The total QIA investment in AEML will be approximately Rs 3,200 crore," a company statement said.
AEML is the licensee for an integrated power distribution, transmission and generation business that currently serves more than three million consumers across a license area of about 400 square kilometers in Mumbai.
Its market share of Mumbai is close to 87 per cent by license area, 67 per cent by consumers served and 55 per cent by electricity supplied.
"As part of the transaction, ATL and QIA have agreed definitive plans to ensure that over 30 per cent of the electricity supplied by AEML is sourced from solar and wind power plants by the year 2023," the statement said.
"In addition, ATL and QIA have agreed a number of other green initiatives to combat climate change and facilitate the transition to a sustainable, low carbon economy."
Al-Mahmoud further said "this investment demonstrates our confidence in India, with whom Qatar shares deep-rooted ties and excellent relations."