Century Enka signs PPA for 9.9 MW wind-solar hybrid plant
Century Enka Limited has entered into a Power Purchase Agreement with ABREL Century Energy Limited to set up a 9.9 MW wind-solar hybrid power plant for captive consumption at its Bhosari facility. The project, scheduled for commissioning on June 30, 2027, involves a related party transaction conducted at arm's length, requiring Century Enka to hold 26% equity in the SPV.
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Century Enka Limited has executed a Power Purchase Agreement (PPA) with ABREL Century Energy Limited to establish a 9.9 MW wind-solar hybrid power plant for captive consumption. The agreement ensures a dedicated power supply for one of the company's facilities located at Bhosari, Pune, Maharashtra. The project is scheduled for commissioning on June 30, 2027, with a grace period of three months to account for potential delays.
The PPA was signed pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. ABREL Century Energy Limited, a Special Purpose Vehicle (SPV), will operate the power plant. To qualify as a captive user under the Electricity Act, 2003, and the Electricity Rules, 2005, Century Enka is required to hold a minimum of 26% of the equity share capital of the power producer.
The transaction falls within the definition of related party transactions. The company has confirmed that the agreement was conducted at arm's length. The project involves a domestic entity and focuses on the broad commercial consideration of setting up the 9.9 MW hybrid facility.
Key Details of the Agreement
The following table summarises the key parameters of the PPA between Century Enka and ABREL Century Energy Limited:
| Particulars: | Details |
|---|---|
| Entity | ABREL Century Energy Limited (Power Producer) |
| Project Type | 9.9 MW Wind-Solar Hybrid Power Plant |
| Location | Bhosari, Pune, Maharashtra |
| Commissioning Date | June 30, 2027 |
| Grace Period | 3 months |
| Related Party Transaction | Yes, at arm's length |
The information regarding the PPA is available on the company's official website. Rahul Dubey, VP-Legal & Company Secretary, signed the disclosure on behalf of Century Enka Limited.
Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE485A01015/684b5b3a2b0d4db7.pdf
Historical Stock Returns for Century Enka
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.39% | -1.88% | +3.02% | +21.90% | +1.29% | +26.82% |
How will the capital expenditure for this hybrid project impact Century Enka's cash flow and financial leverage over the next three years?
What are the projected cost savings for the Bhosari facility compared to current grid power tariffs upon commissioning in 2027?
Does this agreement signal a broader strategy to expand renewable energy capacity to other company manufacturing facilities?
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