Torrent Power (TPW) has entered into an SPA for 100% acquisition of Surya Vidyut Limited, a wholly-owned subsidiary of CESC. Such transactions are typically goodfor one and not for the other; however, in this case, it is a win-win for both due tothe difference in their strategic intents – TPW wanted to add RE capacity withoutparticipating in highly competitive bids, while CESC aims to grow its distributionbusiness and move away from RE generation. Further, CESC will receive a valuewhich is higher than the one ascribed to these low IRR assets.