CESC to Acquire 1.4 GW Renewable Energy Portfolio from ReNew for ₹4,859 Crore
CESC Renewable Energy Acquisition: CESC Limited has announced that its subsidiary Purvah Green Power Private Limited (PGPPL) has agreed to acquire 100% of the share capital of six renewable energy companies from ReNew Solar Power Private Limited. The transaction will add approximately 1.4 GWp of operational renewable energy capacity to CESC’s portfolio.
The acquisition, announced on 10 August 2026, has an enterprise value of ₹4,859 crore, excluding a contingent payment estimated at ₹230 crore. The transaction is expected to strengthen CESC’s renewable energy portfolio and accelerate the expansion of its pan-India clean energy platform.
CESC Renewable Energy Acquisition: Key Details
Under the Share Purchase Agreement, Purvah Green Power will acquire 100% of the share capital of six companies from ReNew Solar Power Private Limited. Following completion, these companies will become step-down subsidiaries of CESC.
| Particular | Details |
|---|---|
| Acquirer | Purvah Green Power Private Limited |
| Parent Company | CESC Limited |
| Seller | ReNew Solar Power Private Limited |
| Number of Target Companies | 6 |
| Capacity Acquired | 1,411.48 MWp (~1.4 GWp) |
| Enterprise Value | ₹4,859 crore |
| Contingent Payment | Estimated ₹230 crore |
| Cash Consideration at Closing | ₹1,582 crore |
| Stake Acquired | 100% in each company |
| Sector | Renewable Energy |
| Expected Completion | Before 31 October 2026 |
| Government Approval | Not required |
The transaction is not classified as a related-party transaction, and CESC’s promoter, promoter group and group companies have no interest in the target companies.
Which Renewable Energy Assets Will CESC Acquire?
The six target companies collectively have an installed capacity of 1,411.48 MW, or approximately 1.4 GWp.
| Target Company | Installed Capacity |
| ReNew Hans Urja Private Limited | 810 MWp |
| ReNew Solar Photovoltaic Private Limited | 506.25 MWp |
| ReNew Wind Energy (Karnataka 3) Private Limited | 24.55 MW |
| ReNew Wind Energy (MP Four) Private Limited | 24.60 MW |
| ReNew Wind Energy (Karnataka 4) Private Limited | 22.90 MW |
| ReNew Agni Power Private Limited | 23.18 MW |
| Total | 1,411.48 MW |
The target businesses are engaged in the generation and supply of electricity from renewable sources, along with project development and associated transmission infrastructure.
₹4,859 Crore Enterprise Value
The acquisition carries an enterprise value of ₹4,859 crore, excluding a contingent payment estimated at ₹230 crore. The contingent payment will become payable only if additional realisation arises from a change-in-law claim.
CESC said the cash consideration payable at closing will be approximately ₹1,582 crore, including ₹94 crore of net current assets but excluding the contingent payment.
The closing consideration consists of:
- ₹589 crore payment to sellers for share capital
- ₹993 crore infusion of unsecured promoter debt, which will be used to repay existing promoter debt
The final consideration remains subject to post-closing adjustments specified under the agreement.
Why Is CESC Making This Acquisition?
The acquisition is strategically important for CESC because it will substantially expand the company’s renewable energy footprint.
According to the company, completing the transaction will increase its operational renewable capacity to more than 1.8 GWp and its contracted/tied-up capacity to more than 3 GWp, taking the total portfolio to approximately 4.8 GWp.
The transaction therefore gives CESC immediate operating capacity rather than relying entirely on projects that are still under development.
More Than 90% Capacity Has Long-Term PPAs
A key feature of the acquisition is the contracted nature of the renewable assets.
According to the company’s announcement, more than 90% of the acquired capacity is contracted with the Solar Energy Corporation of India (SECI) through long-term power purchase agreements.
The remaining capacity is contracted with Karnataka distribution companies. The PPAs have a tenure of 25 years.
This long-term contracted structure provides greater visibility into future electricity generation and cash flows compared with completely merchant-oriented renewable assets.
Acquisition to Increase CESC’s Operating Renewable Capacity
Before the transaction, Purvah Green Power had approximately 3.4 GWp of contracted capacity.
Following completion of the acquisition:
- Total contracted capacity is expected to rise to 4.8 GWp
- Operational capacity will increase to approximately 1.8 GWp
- Around 3 GWp will be tied up and at various stages of construction
- An additional 2.2 GWh battery capacity is tied up and under implementation
The company said the acquisition will significantly increase the proportion of its portfolio that is already generating revenue and strengthen recurring cash flows ahead of the commissioning of its under-construction pipeline.
CESC’s Renewable Energy Strategy
The acquisition marks a significant step in CESC’s transition toward a broader energy portfolio.
Purvah Green Power was incorporated in December 2023 as CESC’s renewable energy platform. It develops and operates utility-scale solar, wind, and hybrid renewable energy assets across India and is working toward building a 10 GW renewable energy portfolio.
The latest transaction accelerates that strategy by adding a large portfolio of already operational assets.
Target Companies and Their Businesses
All six companies being acquired operate in renewable power generation and project development.
Some of the acquired assets have only recently commenced operations, while the wind assets have been operating for several years.
For example, ReNew Hans Urja has an installed capacity of 810 MW, with portions of the project commissioned during FY25. Its FY25 turnover was ₹132.8 crore. ReNew Solar Photovoltaic has a capacity of 506.25 MW and reported FY25 turnover of ₹41.5 crore.
The four smaller wind-power companies operate projects in Karnataka and Madhya Pradesh, with capacities ranging from approximately 22.9 MW to 24.6 MW.
Expected Completion Before October 31, 2026
CESC expects the acquisition to be completed before 31 October 2026.
Importantly, the company has stated that no governmental or regulatory approval is required for the acquisition.
The transaction will therefore depend primarily on completion of the conditions and procedures specified under the Share Purchase Agreement.