By Yagnoseni Das

(Reuters) -Hexa Climate Solutions, backed by private equity firm I Squared Capital, has acquired Finland-based Fortum's Indian renewables portfolio and plans to invest $500 million to expand its clean energy projects.

The deal includes a 100% stake in state-owned Fortum's India unit, a 206 MW commercial and industrial renewables portfolio, a 600 MW pipeline of ready-to-build projects, and Fortum's 40-member India team, Hexa said on Tuesday.

The company, based in Gurugram, India, did not disclose the deal value.

Sanjeev Aggarwal, founder and executive chairman of Hexa, told Reuters that the firm will invest a total of $500 million in India and other developing countries. The investment will be backed by I Squared Capital, a majority shareholder in the firm, he said.

Hexa will invest $100 million to complete Fortum's solar and wind projects in India. It will spend another $400 million to grow its clean energy portfolio to 2.5 GW over the next two to three years from 100 MW currently, Aggarwal said.

The company expects the portfolio to comprise 65% of solar assets and the rest in wind assets.

The Fortum deal comes amid India's push to nearly triple its non-fossil power capacity to at least 500 GW by 2030.

The sale marks Fortum's exit from India. It sold 185 MW of solar assets in 2024 as part of a broader strategic shift to focus on the Finnish market.

(Reporting by Yagnoseni Das and Sethuraman NR in Bengaluru; Editing by Sonia Cheema)