Global investment firm KKR has signed an agreement to acquire five solar energy assets from Shapoorji Pallonji Infrastructure Capital (SP Infra) for Rs15.54bn ($204m).

SP Infra is the infrastructure development arm of the Shapoorji Pallonji Group, with assets and businesses in the renewable and gas-based power.

The transaction includes assets from the Indian states of Maharashtra and Tamil Nadu with a combined capacity of 317MW.

KKR Asia Pacific Infrastructure head David Luboff said: “We are truly pleased to extend our Infrastructure franchise in Asia and India through this investment in a world-class portfolio of fully operational solar energy projects.

“Given the growing demand across Asia Pacific for sustainable energy solutions, we also see this as a great example of how KKR can bring capital and expertise to assets to help meet the demand for infrastructure development.

“Looking ahead, we are excited to explore even more renewable energy opportunities in India and overseas.”

The acquisition is KKR’s second investment in India

The solar portfolio includes assets with a capacity of 169MW in Maharashtra and assets with a capacity of 148MW in Tamil Nadu.

The completion of the acquisition is subject to customary approvals.

The solar asset purchase is the KKR’s second investment in the country as part of its dedicated Infrastructure strategy.

KKR India CEO Sanjay Nayar said: “SP Infra and the Shapoorji Pallonji Group are recognised in India and worldwide for the high quality of their renewable energy projects, and given the government’s ambitious target of achieving 175GW of renewable energy capacity by 2022, we believe this is an attractive time to invest in this portfolio and provide even greater solar energy solutions to communities across India.”

The global investment firm sees India as key part of its Asia Infrastructure strategy.