Tata Power, the energy arm of salt to software conglomerate Tata Group, on Tuesday announced its decision to buy a 39.2 MW wind farm in Gujarat from American energy-producer AES Corp.

The company said that its subsidiary Tata Power Renewable Energy Ltd. (TPREL) had signed a share purchase agreement with AES Corp to acquire 100 per cent stake in Jamnagar-based AES Saurashtra Windfarms Private Limited.

Anil Sardana, Managing Director of Tata Power, said the company was committed to generate up to a quarter of its total power generation capacity from clean sources, adding that the company was proud to hit the deal.

Announcing the move, Sardana said, "Tata Power is committed to generating 20-25 per cent of its total generation capacity from clean energy sources . we are constantly looking out for similar opportunities in respect of wind and solar plants."

With the most-recent acquisition, Tata Power's total electricity generation capacity has jumped to 8,560 MW, of which wind energy accounts only for 437 MW.

None of the two sides disclosed the financial terms of the deal. AES Corp. declined to mention the reason behind its decision to exit the project.