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Orient Green Power Company has announced sale of stake in Powergen Lanka, Sri Lanka. Powergen is the holder of a Power Purchase Agreement dated 22 December 2009 with the Ceylon Electricity Board (CEB) for operating and supplying power to CEB upto 10.5 MW wind energy project in Puttalam, Sri Lanka.
Orient Green Power Company had entered into a joint venture agreement in 2010-2011 and acquired 90% stake in Powergen which became a subsidiary of OGPL with effect from 11 October 2010.
The company with a view to concentrate on fast emerging renewable business in India, decided to exit the small wind projects overseas and accordingly have decided to offload its 90% stake in Powergen. Windforce, Colombo approached Orient Green Power to purchase the 90% stake of Powergen held by the company and also 10% stake held by other minority shareholders.
The above proposal was discussed and approved at its board meeting held on 14 July 2012. Subsequent to this approval and signing of share sale and purchase agreement on 16 July 2012, OGPL has completed the process of disinvestments on 19 July 2012. With this divestment, Powergen has ceased to be a subsidiary of OGPL with effect from 16 July 2012.
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