IndiGrid Bets Big on Rajasthan Solar, Karnataka Grid Transmission Assets

• IndiGrid will pay ₹21 billion for ReNew’s 300-MW Rajasthan solar park and a strategic Karnataka transmission line, boosting its renewable portfolio and grid reach.

India Grid Trust (IndiGrid), the country’s first publicly listed power-sector InvIT, has signed definitive agreements to acquire two fully-operational energy assets from ReNew: the 300-MW AC ReNew Solar Aayan park in Rajasthan and the Koppal–Narendra interstate transmission project in Karnataka. The twin deals carry a combined enterprise value of roughly ₹21.08 billion (≈US $250 million), rising to ₹21.75 billion after working-capital adjustments.

Located in Barmer district’s high-irradiation corridor, the solar park has been exporting power since March 2024 under a 25-year power-purchase agreement with Solar Energy Corporation of India at a fixed tariff of ₹2.37 per kWh. Its proximity to ReNew Solar Urja—another 300-MW plant IndiGrid bought last year—offers obvious operational synergies while lifting IndiGrid’s solar portfolio to more than 1 GW.

The second asset, Koppal–Narendra Transmission Ltd, comprises about 276 circuit-kilometres of 400-kV lines and 2,500 MVA of transformation capacity, linking renewable-rich Karnataka to the national grid. Commissioned in October 2023 on a build-own-operate-maintain basis, the line is strategically sited to handle rising green-power flows from the southern peninsula.

IndiGrid will fund the purchase through a blend of equity issuance, internal accruals and fresh debt, nudging its net-debt-to-assets-under-management ratio to about 62 per cent—still within the trust’s self-imposed ceiling and leaving room for further expansion. Management expects the acquisitions to be immediately accretive to cash yields, underpinned by long-term contracts and stable, regulated returns.

“These high-quality, operating projects deepen our presence in two key geographies and reinforce our ambition to own the backbone infrastructure that makes India’s energy transition possible,” managing director Harsh Shah said, adding that the Barmer solar project’s 25-year offtake and the transmission line’s tariff-based structure provide predictable revenue streams. The solar park also benefits from IndiGrid’s existing engineering base in western Rajasthan, promising cost-sharing efficiencies.

Completion is subject to customary regulatory and contractual clearances, but IndiGrid expects to close both transactions within this financial year. Once integrated, the InvIT’s portfolio will span 47 power-transmission and renewable assets across 19 Indian states—an expanding footprint that mirrors the country’s race to install 500 GW of non-fossil capacity by 2030.