To invest ₹100 crore in Premier Energy; signs module supply agreement
Azure Power Global Ltd has signed an Module Supply Agreement with Premier Energies Group. As part of this strategic alliance, Premier will supply 2.4 GW of solar cells and solar modules over the next four years having an estimated order value of more than ₹4,000 crore.
Investment in Premier group
Azure has also entered into an agreement to invest ₹100 crore ($ 12.9 million) in the Premier Group, of which an investment of ₹45.5 crore ($ 5.9 million) has been made for the subscription of equity shares and compulsorily convertible debentures issued by Premier Energies Investment Pvt Ltd, towards subscription of 26 per cent shareholding in PEIPL. The balance of ₹54.5 crore ($ 7 million) will be made in the form of subscription to optionally convertible debentures issued by Premier Energy Ltd.
PEIPL is setting up a 1 GW cell and module manufacturing facility in India as part of its expansion plans. This facility will have potential to create employment in excess of 1,000 jobs directly and help augment ancillary industry creating local employment in excess of 2,000 jobs.
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.”
The Premier group has state of the art manufacturing facilities in Hyderabad, having an operational capacity of 750 MW solar cells and 1,250 MW solar modules. It has recently raised $ 25.8 million from GEF Capital Partners, one of the leading climate focused growth PE fund.
The group is currently focused on the expansion of its manufacturing facilities and will have an operating capacity of 2 GW cells and 2 GW modules by December 2022.