Bharti Airtel, a leading global communications solutions provider, has announced its agreement to acquire 283,400 (12.07 percent) equity shares in Egan Solar Power Private Limited. According to the exchange filing, the acquisition aims to meet the regulatory requirement for captive power consumption under electricity laws.
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Egan Solar Power: Generating Electricity through Renewable Sources
Egan Solar Power Private Limited is a special purpose vehicle formed for the purpose of owning and operating a captive power plant. The company is actively involved in the establishment, commissioning, and generation of electricity through renewable energy sources. It recently reported a turnover of Rs 4.15 crore for the fiscal year 2023.
According to Bharti Airtel, the acquisition aligns with its objectives of complying with the regulations governing captive power plants, as specified under the Electricity Act of 2003 and the Indian Electricity Rules of 2005. Additionally, the move allows Bharti Airtel to procure cost-effective renewable energy resources.
However, the completion of the acquisition remains contingent upon Egan Solar's receipt of all necessary consents and permissions from regulatory authorities for open access to captive electricity consumption.
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In the fourth quarter of fiscal year 2023, Bharti Airtel witnessed impressive results, with a consolidated net profit surge of 49.7 percent to Rs 3,005.6 crore. The company's revenue from operations also grew by 14.31 percent to Rs 36,009 crore compared to the same period in the previous fiscal year.
As Bharti Airtel expands its footprint in the renewable energy sector through the acquisition of Egan Solar Power, it reinforces the company's commitment to sustainable practices and compliance with electricity regulations.
