CESC Limited’s renewable arm, Purvah Green Power, is buying six operational solar projects from ReNew Solar Power for ₹4,859 crore. This deal increases Purvah’s total renewable capacity to 4.8 GWp, supporting its goal of reaching 10 GW. The acquisition brings long-term, predictable cash flows from projects tied to central and state government energy contracts.
Purvah Green Power Private Limited, a subsidiary of CESC Limited under the RP-Sanjiv Goenka Group, has signed a definitive agreement to acquire 1.4 GWp of solar power projects from ReNew Solar Power. The deal is valued at an enterprise value of ₹4,859 crore. This acquisition marks a strategic shift for the company, moving it from a focus on developing new green energy projects to owning large-scale, revenue-generating assets.
By adding these 1.4 GWp assets, the company’s total contracted capacity will rise from 3.4 GWp to 4.8 GWp. This is a significant step toward the group’s goal of building a 10 GW renewable energy platform. The acquired projects are located in Rajasthan and Karnataka and are currently managed across six special purpose vehicles.
A key factor for investors to note is the quality of the revenue generated by these assets. Over 90% of the acquired capacity is secured under 25-year Power Purchase Agreements (PPAs) with the Solar Energy Corporation of India (SECI), which is a central government entity. The remaining capacity is contracted with state electricity distribution companies in Karnataka.
While these long-term contracts provide a sense of stability, there are risks to monitor. Contracts with central agencies like SECI are generally viewed as low-risk, but projects tied to state distribution companies can sometimes face payment delays, which is a common challenge in the Indian renewable sector. Furthermore, the deal includes a potential additional payment of ₹230 crore linked to specific legal claims, known as "change-in-law" claims. This adds a level of uncertainty to the final cost of the investment.
The transaction is expected to be completed before October 31, 2026. Moving forward, investors may want to monitor how smoothly the management integrates these six entities into the existing business and whether the expected cash flows remain consistent despite the potential for payment pressure from state utilities.