In a strategic move to capitalize on India’s renewable energy sector, Mahindra Group has entered into a partnership with Ontario Teachers’ Pension Plan Board. According to the agreement, Ontario Teachers’ will acquire a 30% stake in Mahindra Susten Pvt Ltd for a sum of INR 2,371 crore. Additionally, both Mahindra Group and Ontario Teachers’ will jointly explore the potential sale of an additional 9.99% stake in Mahindra Susten.
As part of the collaboration, the companies will establish an Infrastructure Investment Trust (InvIT) that will comprise the renewable power assets of Mahindra Susten, boasting an operational capacity of 1.54 GWp. Furthermore, the proceeds from the stake sale will be utilized by Mahindra Susten to repay loans amounting to INR 575 crore owed to Mahindra Group.
This transaction positions Mahindra Susten to focus on building a robust renewable energy business, specializing in solar energy, hybrid energy, integrated energy storage, and 24/7 green energy plants.
Bruce Crana, Senior Managing Director, Asia Pacific (Investment and Natural Resources) at Ontario Teachers’, emphasized the commitment to growing their green asset portfolio globally in alignment with climate change strategies. India, under the United Nations Framework Convention on Climate Change, has pledged to reduce the emissions intensity of its GDP by 45% by 2030 from the 2005 levels. Additionally, the nation aims to generate 50% of its power from non-fossil fuels by 2030.
Puneet Ranjhen, Member of the Group Executive Board and Executive Vice President at Mahindra Group, highlighted that the partnership with Ontario Teachers’ will unlock significant value in the renewable energy sector. The collaboration is expected to lead to continued joint investments, fostering accelerated growth in the green energy segment.
