BlackRock Real Assets and Mubadala are investing $525 million (403m) for a 10.53% stake in Tata Power’s renewable energy business.

Tata Power Renewables will include five renewable business units of Tata Power, including those in utility-scale solar, wind and hybrid generation assets, solar cell and module manufacturing and solar pumps and electric vehicle (EV) charging infrastructure.

Tata Power Renewables currently has around 4.9GW of green energy assets.

The proposed investment is expected to fund the company’s growth plans, which includes its target to have a portfolio of more than 20GW of renewable assets and a market leading position in the rooftop and EV charging sector across India.

Anne Valentine Andrews, BlackRock’s Global Head of Real Assets said: “We are pleased to invest alongside Tata Power in this well diversified and vertically integrated renewables business.

“With one of the largest portfolios of solar and wind assets in the country and a very experienced management team, Tata Power Renewables is at the forefront of India’s ambition to secure greater energy stability for its citizens while positioning its economy for a low carbon future. India’s success in transitioning its energy economy will be crucial to the world’s ability to meet its climate goals.”

The transaction is subject to conditions precedent and customary regulatory approvals.