Chennai, Jun 20 (PTI) Tamilnadu Petroproducts Ltd on Tuesday said it would invest up to Rs 13.88 crore by acquiring 2.73 per cent paid-up equity capital in Mumbai-based Dalavaipuram Renewables.

Tamilnadu Petroproducts Ltd is a part of AM International Singapore.

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Dalavaipuram Renewables Pvt Ltd was incorporated as a special purpose vehicle (SPV) with the objective of setting up a wind and solar captive power plant at Tuticorin in Tamil Nadu, and operating a plant for the purpose of generating and selling power.

"We wish to inform you that the company had entered into an agreement with Dalavaipuram Renewables Pvt Ltd to procure up to 59.93 million kWh power per annum (solar and wind)," Tamilnadu Petroproducts Ltd said in a BSE filing.

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In pursuant to this development, the company agreed to invest up to Rs 13.88 crore, which constitutes 2.73 per cent of the paid-up equity capital of DRPL, to meet the requirement of captive power generation under the Electricity Act, 2003, the company said.

The acquisition would be for "cash consideration" and is set to be completed by September.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)