CESC has signed a power purchase agreement with Prism Johnson for a 49.5 MW wind energy project, with Prism Johnson set to invest up to ₹40 crore for a 26.5% ownership stake in Kus Renewable Private Limited.

Deal structure and investment details

Under the agreement, Prism Johnson Limited will acquire a 26.5% stake in Kus Renewable Private Limited by investing up to ₹40 crore. The wind project, rated at 49.5 MW, will supply renewable energy under a long-term arrangement spanning 25 years. The agreement was executed on September 25, 2026, under the captive model.

The key parameters of the transaction are outlined below:

Strategic entry into commercial and industrial segment

The deal marks Purvah Green Power Private Limited, the renewable energy platform of CESC within the RP-Sanjiv Goenka Group, entering the commercial and industrial (C&I) power supply market. Previously focused on utility-contracted portfolios, Purvah now aims to build a renewable platform exceeding 10 GW, with this deal serving as its first C&I agreement.

Prism Johnson will hold 26.5% of the project company, while Purvah retains the remaining 73.5%. The structure qualifies as a group captive arrangement under Rule 3 of the Electricity Rules, 2005, exempting the consumer from cross-subsidy and additional surcharges levied by state distribution companies. This lowers the delivered power cost for Prism Johnson while providing Purvah with a long-term offtaker.

Project specifics and timeline

The wind power plant will be constructed by Kus Renewable Private Limited at Tehsil Alot, District Ratlam, Madhya Pradesh. It will supply energy to Prism Johnson’s cement production facility located in District Satna, Madhya Pradesh. The scheduled commercial operation date is January 25, 2028. Prism Johnson’s investment in equity and redeemable preference shares is expected to be completed tentatively by October 31, 2027, three months prior to the commercial operation date.

Portfolio context and market outlook

Following an August 2026 agreement to acquire a 1.4 GWp operating solar portfolio from ReNew Solar Power for an enterprise value of ₹4,859 crore, Purvah’s contracted capacity stands at 4.8 GWp, with 1.8 GWp operational. The company also has 2.2 GWh of battery storage under implementation. The C&I segment is emerging as a key driver for Indian renewables, with capacity expected to rise from around 40 GW at the end of FY26 to 57 GW by FY28, according to CRISIL Ratings.

CESC Limited has allotted 19,000 secured, unlisted, redeemable, and rated non-convertible debentures (NCDs) aggregating to ₹190 crore on a private placement basis.

The allotment was approved by the Committee of the Board of Directors at its meeting held on September 24, 2026. The securities were allotted to Kotak Mahindra Bank Limited, headquartered in Mumbai. This follows the initial intimation regarding the review of the proposal made on September 17, 2026, and the subsequent approval of the issuance on September 22, 2026.

Key Details

• Instrument: Secured, Unlisted, Redeemable, Rated Non-Convertible Debentures
• Issue Size: ₹190 crore (19,000 NCDs of face value ₹1 lakh each)
• Allottee: Kotak Mahindra Bank Limited
• Basis: Private Placement
• Date of Allotment: September 24, 2026
• Maturity Date: September 24, 2031
• Tenure: 5 years

Coupon and Security Structure

The NCDs offer a coupon rate linked to the One Month MIBOR OIS plus a spread of 2.20% per annum. Interest payments will be made monthly on the last day of each month, commencing from the deemed date of allotment.

The securities are backed by a first ranking pari passu charge by way of mortgage over the company's immovable fixed assets and hypothecation over movable fixed assets, both present and future. The security cover is maintained at 1.10 times throughout the tenure.

Redemption Schedule

The principal amount of ₹190 crore will be repaid in 16 equal installments of approximately ₹11.88 crore each, starting from December 31, 2027, and concluding on the final maturity date of September 24, 2031.

Call/Put Option

The debentures include a call and put option exercisable at the end of three years from the deemed date of allotment, at par value. In the event of a payment default, the company will pay an additional interest of 2% per annum over the applicable coupon rate.