Royal Dutch Shell mulls $500 million investment in CESL's decentralised solar business: Report

Under the decentralised solar programme, CESL has set target of 9.4-gigawatt (GW) portfolio over the next five years, which may lower greenhouse gas emissions by 27.55 million tonnes. (Source: Reuters)

Royal Dutch Shell is considering investing $500 million in state-run Convergence Energy Services’ (CESL) decentralised solar business, Mint has reported.

"The discussions have been on for a while, with the final term sheet expected to be signed shortly. The proposed investment is planned at the asset level," a source told the publication.

Moneycontrol could not independently verify the story.

CESL Managing Director and Chief Executive Officer Mahua Acharya declined to comment when contacted by Mint.

The publication previously reported that CESL is in talks with Indian and global investors to raise $500 million from a stake sale at the asset level. CESL hired Deloitte to manage the sale.

"We do not comment on market speculation," a Shell spokesperson told Mint. A Deloitte spokesperson also declined to comment.

Under the decentralised solar programme, CESL has set a target of 9.4-gigawatt (GW) portfolio over the next five years, which may lower greenhouse gas emissions by 27.55 million tonnes. Shell operates the Hazira LNG terminal in Gujarat.

India's renewable energy space has recently seen significant interest from global energy majors. Thai energy major PTT Group had in July acquired a 41.6 percent stake in Avaada Energy Pvt. Ltd for around $454 million.