Vodafone Idea Acquires 26% Stake in Renewable Energy Subsidiary MTK Quantum

Vodafone Idea Invests in Renewable Energy Venture to Secure Cost-Effective Power

India's third-largest telecom operator, Vodafone Idea, has made a strategic move to acquire a 26% stake in MTK Quantum Green Energy Pvt. Ltd., a renewable energy special purpose vehicle (SPV). This acquisition is part of the company's efforts to secure cost-effective green power for its operations.

As per a regulatory filing on Tuesday, Vodafone Idea 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. The company is being set up to own and operate a captive renewable power plant, which is expected to comply with captive power plant norms under the Electricity Act, 2003 and the Indian Electricity Rules, 2005.

The acquisition aims to help Vodafone Idea procure renewable energy at lower costs. To achieve this, the company 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.

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MTK Quantum Green Energy, incorporated in October 2025, is a subsidiary of Shree MTK Textiles Pvt. Ltd. and is currently 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.

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