Ingka Investments Makes First Major Renewable Energy Investment in India with 210 MW Solar Project

Ingka Investments, the investment arm of the IKEA-related Ingka Group, has officially entered the Indian renewable energy market by acquiring Saimaa Solar Private Limited for its 210 MWp solar power project located in Rajasthan. The acquisition was made from IB Vogt Singapore Pte Limited.

The Saimaa Solar Private Limited project is a substantial 210 megawatt peak (MWp) solar power plant that will operate without government subsidies, highlighting its economic viability.

This move signifies Ingka Investments' first foray into India's burgeoning renewable energy landscape. It aligns with the company's broader strategic commitment of EUR 97.5 million towards renewable energy initiatives within India.

CMS INDUSLAW provided legal advisory services to Ingka Investments for this acquisition, with a team led by Harman Walia. The firm also offered expertise in project law and tax law aspects through its partners and associates.

Impact: This investment is a significant endorsement of India's renewable energy potential and policy framework. It is expected to boost investor confidence, potentially attract further foreign capital into the sector, and contribute to India's clean energy targets. The successful execution of subsidy-free projects like this one demonstrates the increasing competitiveness of solar power in India. Impact Rating: 8/10

Difficult Terms: Ingka Investments: The investment division of the Ingka Group, which is a major global retailer and operator of IKEA stores. Ingka Group: A multinational conglomerate that owns and operates IKEA stores worldwide, involved in retail, manufacturing, and investment. Saimaa Solar Private Limited: The specific company that owns and will operate the solar project acquired by Ingka Investments. It is a privately held entity. IB Vogt Singapore Pte Limited: The seller of Saimaa Solar Private Limited, likely a company involved in developing or owning solar projects. MWp (Megawatt peak): A unit of power capacity, specifically the maximum power a solar panel or system can produce under standard test conditions. Subsidy-free: Refers to a project that can operate profitably without financial support or subsidies from the government.