BALCO and Serentica Renewables India Private (SRIPL) signed a Power Delivery Agreement (PDA) to obtain hybrid renewable electricity for its aluminium operations in Chhattisgarh. BALCO will own 26 per cent of the stock in the Special Purpose Vehicle (SPV), and the project will be financed at a debt-to-equity ratio of 70:30.
Construction of the hybrid energy project will follow a captive paradigm and a build-own-operate philosophy. The PDA will be in effect for 25 years starting on the project's launching date. After signing the PDA, the SPV should begin supplying electricity in 24 months. According to Vedanta, this will aid in ensuring a steady electricity supply for the aluminium industry from renewable energy sources.
"BALCO has entered into a Power Delivery Agreement (PDA) to source 105 MW hybrid renewable power for its aluminium operations at Chhattisgarh, through Special Purpose Vehicle (SPV) i.e. affiliates of SRIPL," said Vedanta.
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