CLP India may buy Mahindra Susten’s 160 mw solar assets by February-end

CLP India, an independent power producer, is in advance discussions with Mahindra Susten to acquire 160 mw of its operational solar energy assets as part of its strategy to grow the renewable portfolio. The deal is likely to close by February-end, two sources close to the development told FE.

Earlier, CLP India and Piramal Group had submitted binding offers for Mahindra Susten’s solar assets. However, Piramal later backed out over valuations. “Given the good quality of Mahindra’s assets, the deal is likely to fetch a high premium over its current valuations,” sources said.

According to sources, the deal is likely to fetch between Rs 850 crore and Rs 1,000 crore, which is Rs 5.31 crore per mw to Rs 6.25 crore per mw, while the current cost of setting up a solar project is Rs 5-5.2 crore/mw.