French oil major Total SA will invest $510 million to acquire a 50% stake in Adani's solar assets.
As a part of the binding agreement between the two companies, Total SA will own half of a joint venture (JV) company that will house 2,148 MW of operating solar projects owned by Adani Green Energy Ltd (AGEL) which will hold the balance (50%) stake in it, the companies said in a joint statement on Thursday.
The solar project portfolio is spread across 11 states in India.
"We are delighted to extend our long-term partnership with Total to our renewable energy business," Adani Group chairman Gautam Adani said in the statement.
This will be Adani's second partnership with Total SA. The French energy giant had bought a 37.4% stake in Adani Gas for around Rs 5,700 crore in October last year.
"Total is fully engaged in the energy transition and to supporting India, a key country in the fight against climate change, in diversifying its energy mix through partnerships in natural gas and now in solar energy," Total chief executive officer CEO Patrick Pouyanne said in the statement.
"This interest in over 2GW of solar projects represents a real change of scale of our presence in India's renewable energy sector, which has very significant growth potential in the coming years. It will contribute to our ambition to deploy 25GW of renewable energy by 2025," he added.
The deal is likely to be concluded before the end of FY20. AGEL has a total renewable portfolio of 5,290 MW, out of which 2,320 MW is operational and rest 2,970 MW is under construction in the first of FY20.