Tata Power on Tuesday signed an agreement to acquire 51 per cent stake of its partner, BP Alternative Energy Holdings, in their solar joint venture, Tata BP Solar.
After the purchase, Tata Power will own the entire company.
The company did not disclose the financial details of the transaction.
The companies would require approvals from the Reserve Bank of India and the Competition Commission of India to complete the transaction, Tata said in a press release.
The joint venture was formed in 1989 to manufacture photovoltaic (PV) cells and modules.
Tata Power will continue to enjoy access to certain BP technology until 2013. A technology agreement will be signed for the same.
Tata BP Solar has a 125-megawatt solar module manufacturing capacity.
Anil Sardana, managing director of Tata Power, said favourable policy has led to an increase in size of the solar module and solar cell market in country.
“It is a great opportunity for the company to grow and capture a healthy market share. We would also like to reiterate that Tata BP Solar is not impacted by the decision of BP to gradually exit its solar business and that it is business as usual for them,” said Sardana.
The Jawaharlal Nehru National Solar Mission has set an ambitious target of 20,000 Mw of solar power by 2022. Some of the policy incentives for the same, include solar power purchase obligations, attractive feed-in-tariffs and incentives to set up land-based and rooftop solar installations. In a huge advantage to local manufacturers, the policies lay emphasis on usage of indigenously manufactured modules for getting the above incentives.
