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Tata Agrees to Acquire BP?s 51% Stake in Indian Solar Energy JV

Tata Power Tuesday said it would acquire the remaining 51 percent stake from BP Alternative Energy Holdings in the joint venture Tata BP Solar. "Tata Power, today announced the signing of a share purchase agreement with BP Alternative Energy Holdings to purchase their 51 percent shares in the joint venture – Tata BP Solar," the company said in a statement. On completion of transaction, Tata Power will own 100 percent of the company, the statement said.

The transaction which also entails a change in control in the company would require approval from the Reserve Bank of India and The Competition Commission of India (CCI). Tata Power and BP have agreed that the Company will continue to enjoy access to certain BP technology until 2013. The Company and BP will enter into a technology agreement to give effect to this understanding, it said.

"We are happy to acquire higher equity in Tata BP Solar. We believe the favourable policy environment in India has led to an increase in the size of the solar module and solar cell market. "We would also like to reiterate that Tata BP Solar is not impacted by the decision of BP to gradually exit its solar business and that it is Business-As-Usual for them," Anil Sardana Managing Director Tata Power said.

Tata BP Solar India Limited was incorporated as a Joint Venture between Tata Exports Ltd (renamed Tata International Limited) and BP Solar India Holdings Limited (renamed BP Alternative Energy Holdings Limited) in 1989 for the purpose of manufacturing photovoltaic (PV) cells and modules. BP holds a 51 percent stake in the share capital of the JV company. Tata BP Solar has a 125 MW solar module manufacturing capacity.