Sembcorp Utilities, wholly-owned subsidiary of Sembcorp, has signed agreements to purchase a 60% interest in IDFC Alternatives-backed renewable energy firm, Green Infra, for INR10.6bn ($169.7m).

The acquisition of renewable energy company in India is a part of Sembcorp’s efforts to boost its renewable energy business.

A shareholders agreement and a share purchase agreement have been signed by Sembcorp with majority shareholders in Green Infra, IDFC Private Equity Fund II and IDFC Private Equity Fund III, for the acquisition.

Upon completion of the transaction, IDFC Private Equity Fund III, which is managed by IDFC Alternatives, will hold a 40% stake in Green Infra.

Sembcorp Group president and CEO Tang Kin Fei said: "This acquisition will provide Sembcorp with a platform to grow our renewable energy business.

"Green Infra’s strong capabilities and experienced team will help to accelerate our growth in the renewable energy sector not only in India, but globally. Meanwhile, with investments in both thermal and renewable energy, Sembcorp is well-positioned for growth in the energy sector with a balanced portfolio of energy assets."

The major part of electricity output from Green Infra is sold under long-term power purchase agreements with India’s state electricity boards.

The remaining electricity output is sold to commercial customers under long-term contracts.

Green Infra is operating and developing 665MW of wind and 35MW of solar assets located in six renewable resource-rich states in the southern, western and central regions of India.