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Solar project acquisitions by a foreign company in India

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Techie Simon

21 Points Posted on 23 July 2021

One of my Global Client is willing to buy a recently commissioned solar project in Tamilandu , India. , And asking fo these following question , can any one can answer the questions please ?

1.What Happens when the 25 years are over ?DO
the sites needs to be evacuated and cleared? if
yes , at who's expenses .?
2.What are we buying ? a Company ? a project ?(
( if so under what legal Entity ).
3.Whats the company Tax Rate ?
4.Whats the allowed depreciation period?Are
there any accumulated losses, and can they be
ued to offset future tax payments,if so how?
5.Availability of local non-recourse Financing ?
at what interest rates? Leverage rates ( Howmuch
of the total will they finance ?)

Replies (2)

Quick Summary

A foreign company is looking to acquire a recently commissioned solar project in Tamil Nadu, India, and has posed several critical questions. These include the implications and costs of site decommissioning after the 25-year operational period, the exact legal entity being acquired (company vs. project), applicable corporate tax rates, depreciation allowances, and the possibility of utilising accumulated losses for tax offsets. Additionally, the client is inquiring about the availability and terms of local non-recourse financing, including interest rates and leverage ratios. While these are common concerns for such transactions in India, professional legal and financial advice is recommended for thorough due diligence.