A subsidiary of Torrent Power Ltd. will set up solar projects of up to 50 megawatt in Tamil Nadu to supply clean power to ARS Steels and Alloy International Pvt. The subscription and shareholders' agreement has been signed among Torrent Power, Torrent Urja 14 Pvt. and ARS Steels on Monday, according to an exchange filing.
The deal entails ARS will hold not less than 26% of the aggregate equity shares of Torrent Urja 14 at all times during the subsistence of the power supply and offtake agreement. The company will be issued 'Class A' shares of the Torrent Power arm.
Torrent Power is into generation, transmission and distribution of power, and is also engaged in the manufacturing and supply of power cables.
ARS Steels is one of the major integrated steel plants in India, located at Gummidipoondi, Tamil Nadu. It produces mild steel billets and TMT bars.
Shares of Torrent Power closed 2.03% lower at Rs 1,474,3 apiece, as compared to a flat benchmark BSE Sensex.
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