Mahindra Group to invest over Rs 1,200 crore to build renewable energy projects

The project, which will come up in Maharashtra, will mark the entry of Mahindra Susten into the renewable energy sector.

Mahindra Group will invest Rs 1,200 crore to develop a 150 MW solar and wind power project in India, Mahindra & Mahindra said on April 15.

Mahindra Susten, a subsidiary of the Mahindra Group, will develop the project, while global investor Ontario will be a strategic partner, the statement said. “The installation will include 101 MW wind capacity and 52 MW solar capacity and is expected to generate 460 million kWh of energy leading to expected abatement of 420,000 tonnes of CO2 emissions,” the company said in a stock exchange filing.

The project, which will come up in Maharashtra, will mark the entry of Mahindra Susten into the renewable energy sector. It is likely to be completed in the next two years and will integrate more than 80 percent locally-made components.

Speaking about the project, Anish Shah, CEO & MD, Mahindra Group, said, "Energy transition is a key global and national priority to address climate change. This project is a tangible example of our commitment to sustainability, as a consumer of green power, and building ‘Planet Positive’ businesses, as the developer of the project. It also demonstrates a clear economically accretive business case and Group synergy. The project marks a key milestone in Mahindra Group’s continued investments in building and scaling its green portfolio."

Deepak Thakur, CEO & MD, Mahindra Susten, added, "We are indeed pleased to announce our foray into the hybrid RE space and deliver clean, green power at competitive rates to large C&I consumers. This project will showcase the immense potential of hybrid RE solutions in helping companies transition towards green operations."

Mahindra & Mahindra will also acquire a 26% stake in its solar power generating unit Gelos Solren for Rs 40.08 crore, taking the combined investment to nearly $150 million.

India, the world's third-largest greenhouse gas emitter, is currently trying to boost its non-fossil capacity, including solar and wind energy, to 500 gigawatts (GW) by 2030 after missing its target to install 175 GW of renewable capacity by 2022.

The Mahindra Group aims to adopt 100% renewable energy by 2030.