Vodafone Idea acquires 26% in renewable energy SPV MTK Quantum amid push for green operations

India’s third-largest telecom operator Vodafone Idea has signed agreements to acquire a 26% stake in renewable energy special purpose vehicle (SPV) MTK Quantum Green Energy Pvt. Ltd. as part of its efforts to secure cost-effective green power for its operations.

In a regulatory filing on Tuesday, the telecom operator said it entered into a Power Purchase Agreement (PPA) and a Share Purchase Agreement on May 20 for the acquisition of not less than 26% paid-up equity share capital in MTK Quantum Green Energy Pvt. Ltd., which is being set up to own and operate a captive renewable power plant.

The acquisition is aimed at complying with captive power plant norms under the Electricity Act, 2003 and the Indian Electricity Rules, 2005, while also helping the company procure renewable energy at lower costs.

Vodafone Idea will invest Rs 4.33 crore in cash to subscribe to 26% equity in the SPV in one or more tranches over an estimated six-month period, the filing said.

MTK Quantum Green Energy, incorporated in October 2025, is currently a subsidiary of Shree MTK Textiles Pvt. Ltd. and is in the process of setting up a captive solar power plant in Tamil Nadu. The company has also been formed to undertake solar and wind power generation, transmission and distribution activities.

The renewable energy entity currently has an authorised share capital of Rs 15 lakh and a paid-up capital of Rs 1 lakh. Since it is a newly incorporated company, it has not reported any turnover yet.

Vodafone Idea clarified that the transaction does not qualify as a related party transaction and that its promoter group has no interest in the target entity.

The move comes as telecom operators increasingly look at renewable energy sourcing to reduce energy costs and improve sustainability amid rising network power consumption driven by 5G expansion.