CESL In Talks With Royal Dutch Shell For $500 Million Investment In Its Solar Business: Report

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The proposed investment is planned at the asset level, one of the sources told the publication

State-owned Convergence Energy Services Ltd (CESL) and Dutch firm Royal Dutch Shell Plc are in talks for the latter to invest $500 million in CESL’s decentralized solar business, as per a report.

Livemint reported the matter while citing two sources who informed, “The discussions have been on for a while, with the final term sheet expected to be signed shortly.”

The proposed investment is planned at the asset level, one of the sources told the publication.

The publication previously reported that CESL is looking to sell up to 50 per cent stake in its decentralized solar and electric mobility business at the asset level inorder to raise around $500 million (₹3,713 crores)and in discussions with both Indian and global investors.

The Dutch oil and gas company set up its New Energies division in 2016. It also owns a 49 percent stake in Singapore-based Cleantech Solar Energy that has a 500-megawatt (MW) portfolio in countries including India.

Earlier this year, CESL managing director and chief executive officer Mahua Acharya informed that the company is looking to launch a network of solar-powered charging stations across the country.

India has recorded the highest capacity of rooftop solar capacity installed in a quarter, having added 521 MW in April-June this year. A 53 per cent increase quarter-on-quarter compared to 341 MW installed in January-March, rooftop solar installations were up 517 per cent year-over-year compared to the 85 MW installed in April-June 2020.

The union cabinet had in April approved the PLI scheme for manufacture of high efficiency solar photovoltaic modules with a Rs 4,500 crore outlay. These incentives are expected to add 10 Gw of high-efficiency integrated solar PV manufacturing plants. It aims to bring a direct investment of around Rs 17,200 crore in solar PV manufacturing.

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