Hindustan Zinc inks agreement with SPV for renewable power supply
5th Sep 2022

Hindustan Zinc has executed long term renewable Power Delivery Agreement (PDA) for upto a capacity of 200 MW with SPV, namely Serentica Renewables India 4. The company will hold 26% of equity in the Serentica Renewables India 4 created for Rs 350 crore for long term RE power delivery. The remaining equity in the Serentica Renewables India 4 will be held by affiliated companies. This project will be funded on a 70:30 debt to equity basis.

The equity infusion will be at par as per Investment Agreement and the tariff rate agreed has been independently benchmarked by a third party with reference to prevailing market tariff for RE power and a cost-plus model prescribed by the Central Electricity Regulatory Commission. Serentica Renewables India 4 is expected to commission the projects within 24 months of signing the PDA.

Hindustan Zinc, the world’s second biggest zinc producer, operates the world’s third largest open-pit mine, and world’s largest Zinc Mine in Rampura Agucha, Rajasthan.