TAQA purchases minority stake in Indian hydroelectric project

Abu Dhabi National Energy Company (TAQA) has acquired minority stake in Himachal Sorang Power Limited (HSPL), a company that has undertaken development of the 100MW hydroelectric plant in Himachal Pradesh, India.

Located on the Sorang Khad River, the hydroelectric project is scheduled to commence operations in 2013.

HSPL has completed 90% work at the plant, which uses a run-of-the-river technology to generate electricity from the river’s natural water flow.

The Sorang hydroelectric plant will supply electricity to the power-deficient northern states of India.

TAQA chief executive officer Carl Sheldon said that the deal not only furthers the company’s plans of growing in the renewable energy stream, but also complements its existing power generation business in India.

"It also reflects our confidence in the Indian market," Sheldon added.

TAQA currently operates a 250MW lignite power station in the Neyveli region of southern India.

TAQA made the purchase through TAQA Jyoti Energy Ventures (TAQA Jyoti), a joint venture with Indian power infrastructure company Jyoti Structures.

The company has plans to progressively purchase 100% stake in HSPL.

HSPL is owned by a consortium of companies including NCC Infrastructure Holdings and IL&FS Energy Development Company.