Mumbai, Aug 11 (IANS): Larsen & Toubro on Wednesday announced the divestment of 100 per cent stake in the 3x33 MW (99 MW) run-of-the-river 'Singoli-Bhatwari' hydroelectric project owned by its subsidiary L&T Uttaranchal Hydropower Limited (LTUHPL) to ReNew Power Services Pvt Ltd for Rs 985 crore.

Renew Power Services is a wholly-owned subsidiary of ReNew Power Pvt Ltd.

An L&T statement said that the development is in line with the declared focus of L&T on divesting its non-core assets and improving the shareholder value.

The transaction is subject to completion of customary closing conditions and the closing is expected to take place before September 30, 2021.

"This development is a significant step in our effort to unlock the value of some of our power development assets to streamline and allocate capital to create long-term value for our shareholders," said D.K. Sen, Wholetime Director, Larsen & Toubro.

"It represents our strategic effort to increase focus on our core strengths and exit others to move towards becoming a more asset-light organisation," Sen added.

Sumant Sinha, Founder, Chairman and CEO of ReNew Power, said that given that the asset is already operational, the acquisition is not only value accretive, but also presents a lower level of risk.

"It strengthens our ability to provide firm and round-the-clock power to the grid and compliments our solar and wind assets, filling up an important position in our portfolio. We will be looking to acquire more hydro assets in future as they are the best clean balancing sources for intermittent renewable energy," he said.