Orient Green Power receives an approval from the company’s board to sell the bulk of its biomass operations to its promoter company, SVL Ltd.
The renewable energy-based power generation company had made an application in May 2016 to the Madras High Court for de-merger of the biomass business into a separate listed entity which is currently pending.
Subsequent to its application for de-merger, OGPL has agreed to sell its 20 MW co-generation plant in Kolhapur, Maharashtra to the host Sugar Mill as already approved by the Board. A 10MW plant in Rajasthan is also in the process of being divested. Upon completion of these transactions, the company’s biomass capacity will reduce to 68 MW.
The board has approved the sale at an enterprise value of Rs 275 crore. The transaction will be subject to the approval of shareholders, creditors and regulators.