Tata Power to acquire BP's 51% stake in solar joint venture

Moneycontrol Bureau

Tata Power has signed a share purchase agreement with BP Alternative Energy Holdings to purchase the firm's 51% equity and preference shares in the joint venture Tata BP Solar.

The move follows British oil major BP's announcement earlier this month that it was shutting down its solar business worldwide as it had struggled to make money from it.

Tata Power said it will own 100% of Tata BP Solar once the transaction is complete, which is subject to approval from the Reserve Bank of India and Competition Commission of India.

Tata Power said the company will enter into a technology agreement, which will allow it to continue access to certain BP technology till 2013. There will also be a transition period for product and non-product related rebranding and certification, it said.

"We would like to reiterate that Tata BP Solar is not impacted by the decision of BP to gradually exit its solar business and that it is business as usual for them," said Anil Sardana, MD, Tata Power.

Tata BP Solar makes solar photovoltaic cells, solar modules, products and systems at its plant in Bangalore. It also offers solar power applications for village lighting, water pumping, telecommunications, railways etc.

Tata Power shares closed up 2.4% at Rs 90.55 on NSE on Tuesday.