Tata Power of the Tata Group is in advanced talks with another Indian company Welspun Renewables to acquire the latter’s renewable energy assets. Welspun has a portfolio of 1,152 MW of ‘almost ready’ solar and wind farms in the country. Indian business daily The Economic Times (ET) believes that both companies are in ‘final stages of negotiations’. A formal agreement is expected in the next two to three weeks’ time.

According to the report, Tata is ready to shell out $1.45 billion (inclusive debt) to buy Welspun’s renewable assets. Quoting unnamed sources, it read that a consortium of IDFC Private Equity and Finnish company Fortum too were interested in the deal, but Tata’s offer was 15% to 20% higher. The whole value of the business is pegged at 9,600 crore INR ($1.45 billion). This, said the sources, is 1.8 times the book value of Welspun.

Tata may fund the acquisition through a joint venture platform, including ICICI Venture, Canada’s Caisse de depot et placement du Quebec (CDPQ), State General Reserve Fund of Oman (SGRF) and Kuwait Investment Authority (KIA).

Electric utility company, Tata Power has an installed power generation capacity of 1,38.3 MW from renewable energy sources, its installed solar power capacity comes to 60 MW.

Welspun Renewables, on the other hand, has 685 MW of solar and wind power capacity in India, with another 200 MW to be commissioned by end of next month and another 257 MW due in October-November. However, Welspun Renewables Vice Chairman, Vineet Mittal, reportedly denied that the business was being sold to Tata.