Singapore’s Sembcorp Industries has offloaded its coal-fired power plants in India as it looks to increase its share of renewable energy assets.

Sembcorp Industries has said that it has entered into an agreement to sell its entire stake in Sembcorp Energy India Limited (SEIL) to Tanweer Infrastructure Pte Ltd for Rs 11,700 crore. SEIL is one of the largest independent power producers in India, operating two coalfired power plants with a combined capacity of 2,640MW in Andhra Pradesh.

It also has a renewable energy portfolio of 1,730MW, with another 700 MW under construction. The assets have been bought by Tanweer Infrastructure, which is indirectly owned by a consortium led by Oman Investment Corporation and Ministry of Defence Pension Fund — one of Oman’s largest pension funds with significant investments across power and infrastructure — and Dar Investment SPC.

The SGX-listed company in a statement on Monday said that upon completion of the sale, 51 per cent of Sembcorp’s energy capacity will be renewable, up from 43 per cent, as of June 30, 2022. Sembcorp will have an energy portfolio of 14 GW, with 7.1GW of renewable energy capacity comprising solar, wind and energy storage globally.

On a pro forma basis, Sembcorp’s share of net profit from its sustainable solutions portfolio for the first half of 2022 will increase to 31 per cent from 25 per cent. “The sale of SEIL accelerates the transformation of Sembcorp’s portfolio from brown to green, while protecting the interests of all stakeholders,” said Sembcorp group president and chief executive officer Wong Kim Yin.

“OIC is a trusted and reliable long-term partner, and we are confident SEIL will continue to provide reliable services to its power distribution customers, as well as maintain stability of relationships with suppliers, communities and employees,” Wong Kim Yin said. Sembcorp Industries said that Tanweer will settle the final consideration via a deferred payment note.