Indian renewable energy company Azure Power Global Limited will invest in local solar cell and module maker Premier Energies Group and also source up to 600 MW modules annually for the next 4 years under a module supply agreement.
Under a separate agreement signed, Azure will invest INR 1,000 million ($12.9 million) in Premier Energies out of which INR 455 million ($5.9 million is in the form of equity shares and compulsorily convertible debentures issued by Premier Energies Investment Private Limited (PEIPL).
Azure will use remaining INR 545 million ($7.0 million) in the form of subscription to optionally convertible debentures issued by Premier Energy Limited (PEL).
"This is the first-of-its-kind strategic partnership between an Independent Power Producer and a solar manufacturing company in India. This marks a major milestone in Government of India's goal of Make in India," said Premier Energies Managing Director Chiranjeev Saluja.
PEIPL is setting up a 1 GW cell and module manufacturing facility in India's Telangana for which the state government has allotted additional 20 acres of land in the electronic city (see India PV News Snippets).
"Having a long-term supply visibility is an important factor towards de-risking our business," added Azure Power Chairman Alan Gosling. "This partnership is a prudent step towards securing long term sustainable value for our stakeholders and towards actualization of India's vision of Atmanirbhar Bharat (self-reliant India)."