Bharti Airtel is going to pick a minority stake in Avaada KNShorapur, the company said in a regulatory filing on Sunday. Airtel is going to pay Rs 1,74,26,500 or Rs 1.74 crore as cash consideration for acquiring 7.036% of the company. Avaada KNShorapur is an entity that is supposed to act as a special purpose vehicle (SPV) under the Avaada Indiclean Private Limited for developing, executing, and managing up to 10 MW solar power generation plant(s) in Karnataka.
Why Bharti Airtel has Taken Stake in Avaada KNShorapur
Bharti Airtel has taken a stake in Avaada KNShorapur because it lines with the company’s vision of running a successful data center business with the subsidiary, Nxtra. Avaada KNShorapur’s task will be to comply with the regulatory requirement for captive power plants under the provisions of Electricity ACT 2003 and the Indian Electricity Rules 2005 along with the procurement of cost-effective renewable energy.
Airtel said that the completion of this acquisition is subject to the receipt of all permissions and consents which are to be obtained by Avaada KNShorapur from the regulatory authority for open access for captive consumption of electricity.
It is worth noting that earlier in March, Bharti Airtel had entered into an agreement with Avaada CleanTN Project private limited for taking 9% equity into the company against Rs 7,88,51,500 or Rs 7.88 crore.
With Avaada CleanTN Project Private Limited, Airtel wants to focus and expand its mission of clean energy for its businesses. The telco is actively setting up solar power plants in multiple parts of India to provide energy for its data center business and other operations. The telco’s mission is to reduce its dependence on conventional sources of energy and build more infrastructure and enter into more partnerships so that it can successfully make its green energy goals a reality. The telco is trying to reduce absolute scope 1 and scope 2 Green House Gas (GHG) emissions across its operations by 50.2% by the financial year (FY) 2031.
