Grasim Industries signs LLP agreement with Cleanmax to set up wind power plant in Karnataka

Mumbai: Aditya Birla Group's flagship company, Grasim Industries has formed a limited liability partnership agreement for a capital of Rs 73 crore with Cleanmax Enviro Energy Solutions to establish and operate 32.4 megawatt wind power plant in the State of Karnataka.

"The company has executed a LLP agreement with Cleanmax Enviro Energy Solutions Private Limited (Generator Partner) and Power Purchase Agreement with CleanMax Power 3 LLP (Power Producer), Grasim Industries said in a BSE filing on Friday.

Total Capital of the LLP will be Rs. 73.42 crore which will be contributed by Grasim as Rs.19.09 crore (26 per cent) and generator partner, Cleanmax as Rs. 54.33 crore (74 per cent) in phases. Indicating that Grasim has a shareholding of 26 per cent in the LLP and Cleanmax has around 74 per cent share in the LLP.

Cleanmax, a Mumbai-based renewable energy company, recently signed a joint venture with USA-based Cargill, to set up up a 15 MW wind-solar hybrid power plant in the state of Karnataka.

As per the agreement with Grasim the power generated will be supplied exclusively to Grasim Industries under the captive rules and the Project will be operated by the generator partner, Cleanmax.

"Generator shall have rights to operate the LLP and the said project. Grasim shall have rights over reserved matter," the statement said.

Grasim Industries Limited is a flagship company of the $ 48.3 Billion Aditya Birla Group, that manufactures textile materials including viscose staple fibre, chlor-alkali, linen and insulators in India. Its subsidiaries are UtraTech Cement and Aditya Birla Capital.