New Delhi/Tokyo, March 13 Kansai Transmission and Distribution, a Japanese utility company, has entered the Indian energy market, acquiring a 10 per cent stake in OMC Power, which is in the process of building a 1 gigawatt (GW) renewable energy portfolio in India.
Kansai Transmission and Distribution (KTD), a part of the USD 27-billion Kansai Electric Power, has become the fourth Japanese entity to invest in OMC Power, after Mitsui & Co, Chubu Electric Power, and Honda Motor Co Ltd.
In a video interaction, OMC Power Co-founder & CEO Rohit Chandra said that both companies had been in talks for over a year to establish a business collaboration. This investment is the result of research, market, and feasibility studies.
"This is also the first investment made by Kansai Transmission and Distribution in India's energy sector. They chose us for their India venture," the company official said, noting that Japanese companies have been investing in OMC Power since 2017.
Kansai Transmission and Distribution is investing Rs 160 crore to acquire a 10 per cent stake.
With this investment, the share of Japanese entities in OMC Power has reached around 67 per cent.
The proceeds will be used to accelerate the development of the 1 GW portfolio and build the smart grids business vertical of OMC Power.
"It will be used for the development of next-generation grid infrastructure, which includes smart technologies, digital monitoring systems, and grid resilience enhancement," said Chandra, who was in Japan to sign definitive agreements with Kansai Transmission and Distribution.
"This is a win-win situation for both of us. Kansai Electric Power group is a leading energy utility company in Japan, with a transmission network of over 18,000 km, a distribution line of over 132,000 km, and a generating capacity of 35.8 GW. We will provide them with opportunities to be a part of our 1 GW journey," he said.
Takaharu Ito, Director in charge of Power Distribution & Information Technology, Kansai Transmission and Distribution, said that his company has joined hands with OMC Power to provide reliable, clean energy to communities across India.
"We deeply value our long-standing relationships with fellow Japanese shareholders… we are committed to contributing to OMC's 1 GWp ambition and to accelerating sustainable, inclusive energy solutions across the region," he said.