Renew, India’s decarbonization solutions company, has signed a Share Purchase Agreement with India Grid Trust to sell ReNew Solar Urja Private Limited in Rajasthan for $199 million, with an additional $8 million as an earn-out.

ReNew’s sale aligns with investor interest and strategy, generating a $82 million cash inflow after debt transfer and change-in-law proceeds.

Kailash Vaswani, Group CFO, ReNew, said, “We are committed towards discipline in allocating capital as well as enhancing shareholder value through asset recycling. This reaffirms our ability to unlock value through the sale of assets and pursue more lucrative opportunities. We continue to see interest in the private markets for high-quality stabilized assets.”

According to a press release, ReNew Solar Urja, located in Jaisalmer, Rajasthan, was commissioned in December 2021. The project has a 25-year Power Purchase Agreement (PPA) with Solar Energy Corporation of India (SECI) at a fixed tariff of INR 2.71 per unit. The project has been operational and revenue-generating for the past two years. In 2022-23, the solar project delivered a net PLF of 27.42%.