Finnish state-owned energy company Fortum has agreed to sell two solar power plants in India to global investment firm Actis for around €280m ($334m).

Actis will acquire Fortum’s Pavagada II and Rajasthan solar power plants, each with 250MW of capacity.

The sale of solar assets could have a positive impact of almost €20m ($23m) on Fortum’s City Solutions division results.

Fortum City Solutions division executive vice-president Per Langer said: “I am very happy to announce the transaction with Actis, a large and reputable global investor with a strong presence in the energy sector.

“We can utilise the strong competencies Fortum has gained over the years in solar development and construction while utilising the financial strength and track record of Actis to realise the investment potential.”

The company said that the sale will be concluded and the capital gain recorded in three tranches during the second half of this year and the first half of next year.

Fortum and Actis have also agreed to make further investment in solar power plants in India.

Since 2013, Fortum has developed and constructed 680MW of solar power projects in India.

Actis partner and Energy Infrastructure head Mikael Karlsson said: “This is an important step for Actis as we further strengthen our presence in India building on our achievements to date.

“We are pleased to be entering into this transaction with a firm of Fortum’s calibre and competence.”

Last August, Actis reportedly started talks to acquire more than 550MW of green energy capacity from Indian energy company ReNew Power.

The proposed acquisitions included Pavagada Solar Park, a 300MW solar project located in Tumkur district in the state of Karnataka, and a 250MW wind farm in the state of Gujarat.

According to insiders, Actis offered Rs30bn ($403m) for the acquisition.