Hyundai Motor India will pick up 26% equity in FPEL TN Wind Farm, a special purpose vehicle, to source solar and wind power for its factories, for Rs 38 crore.
FPEL TN Wind Farm will establish a solar power plant with a 75 MW capacity and wind power of 42.9 MW capacity in Tamil Nadu.
Subscription of equity shares in the SPV will enable Hyundai to consume solar and wind power as a ‘captive user’ for a term of 25 years from the commercial operations.
Spread over an area of 538 acres, Hyundai plants in the Kancheepuram district, have an annual production capacity of 850,000 cars. In October, Hyundai submitted a pre-feasibility report outlining plans for investments of Rs 1,500 crore.