Azure Power Global Limited (NYSE: AZRE) ("Azure" or "the Company"), a leading independent sustainable energy solutions provider and renewable power producer in India, announced that it has executed a Module Supply Agreement ("MSA") with Premier Energies Group ("Premier Group"), one of India's leading manufacturers of solar PV cells and modules, for supply of modules up to 600 MW p.a. for next four years.
The Company also entered into an agreement to invest INR 1,000 million (~US$ 12.9 million) in the Premier Group, of which an investment of INR 455 million (~US$ 5.9 million) has been made for the subscription of equity shares & compulsorily convertible debentures issued by Premier Energies Investment Private Limited ("PEIPL"), towards subscription of 26% shareholding in PEIPL. The balance of INR 545 million (~US$ 7 million) will be made in the form of subscription to optionally convertible debentures issued by Premier Energy Limited ("PEL"). PEIPL is setting up a 1 GW cell and module manufacturing facility in India as part of its expansion plans.
Sri Kalvakuntla Taraka Rama Rao, Honourable Minister for Municipal Administration & Urban Development, Industries & Commerce, and Information Technology, Government of Telanganastated that the state government has allotted additional 20 acres of land in electronic city for this expansion plan under Telangana Mega Projects. Commenting on the announcement, the minister said, "Government of Telangana appreciates the repeat investment from Premier Energies and Azure Power. We are proud to host their existing state of the art facility in E-City, Telangana and with the new investments, we are confident that they are going to grow bigger, and we assure our complete support to all our entrepreneurs to reach great heights."
Speaking on this occasion, Mr. Alan Rosling, Chairman, Azure Power said, "Having a long-term supply visibility is an important factor towards de-risking our business. Premier is operating one of the most advanced state-of-the-art solar cell and module line in the country, and we are pleased to partner with Premier. This partnership is a prudent step towards securing long term sustainable value for our stakeholders and towards actualization of India's vision of Atmanirbhar Bharat."
On this announcement, Mr. Surender Pal Singh, Chairman, Premier Energies said, "We, at Premier are honored to partner with Azure Power in the solar manufacturing space in India. Premier has a legacy of over 27 years in solar manufacturing and this partnership further strengthens Premier's leadership position in India."
Mr. Chiranjeev Saluja, Managing Director, Premier Energies said, "This is the first-of-its-kind strategic partnership between an Independent Power Producer and a solar manufacturing company in India. This marks a major milestone in Government of India's goal of Make in India."
Azure Power | http://www.azurepower.com
Premier Energies | http://www.premierenergies.com