The companies will build a large scale renewable energy platform to develop utility-scale solar power plants in the country.
Aditya Birla Group will invest in the platform through Aditya Birla Nuvo (ABNL), while Abraaj will invest through one of its affiliates. Affiliates of the two companies have signed a share subscription and shareholders agreement.
Under the agreed terms, ABNL and the Abraaj affiliates will own 51% and 49% stake in the former’s wholly owned subsidiary Aditya Birla Renewables.
The partnership is in line with the Indian Government’s target to achieve 100GW of solar power capacity by 2022.
Aditya Birla Group solar power & e-commerce group corporate strategy business head Dev Bhattacharya said: "The Aditya Birla Group supports the Government of India’s initiative for a greater share of renewables in the energy mix, essential for sustained economic and industrial growth.
"This cooperation will give a fillip to the Aditya Birla Group’s renewable energy initiatives and contribute to reducing the carbon footprint of India as a whole."
Aditya Birla Renewables will bid for projects at national and state auctions to develop and operate utility-scale solar power plants.
The clean electricity generated at the plants will be fed into national grids across several states in the country.
Abraaj regional funds business global head Mustafa Abdel-Wadood said: "The renewable energy sector in India offers vast potential for growth and can play a transformative role in reducing dependency on fossil fuels and enhancing India’s long-term energy security."
