Mahindra Group and Ontario Teachers’ Pension Plan Board (Ontario Teachers) have joined forces to take advantage of the expanding renewables market in India and support the nation's decarbonization goals.

The companies have signed binding agreements under which Ontario Teachers will acquire a 30% stake in Mahindra Susten Private Limited (Mahindra Susten) at an equity value of INR 23.71 billion (US$297.68 million). The transaction also includes the setting up of an Infrastructure Investment Trust (InvIT). The InvIT is initially proposed to comprise renewable power assets seeded by Mahindra Susten with an operational capacity of around 1.54 GWp.

Mahindra Group and Ontario Teachers' will also work together to examine the possibility of selling a further 9.99% share in Mahindra Susten by May 31, 2023.