Indian Metals & Ferro Alloys signs 65 MW renewable power pact
Indian Metals & Ferro Alloys has secured a 65 MW hybrid renewable power supply for 29 years via a Power Purchase Agreement with EG Urja Strot Private Limited. Concurrently, the company is acquiring a 26% stake in the counterparty for ₹110.18 crore, integrating energy procurement with equity investment. The project includes solar, wind, and battery storage components, with acquisition completion targeted for June 2027.
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Indian Metals & Ferro Alloys has entered into a Power Purchase Agreement with EG Urja Strot Private Limited for the supply of 65 MW hybrid renewable power. The agreement, signed on 25 May 2026, spans a duration of 29 years and operates under a Captive Consumer structure as defined in the Electricity Act, 2003 and Electricity Rules, 2005. This strategic move secures a long-term renewable energy supply comprising 81.4 MW solar capacity, 102.6 MW wind capacity, and 25 MWh Battery Energy Storage System (BESS).
Key Transaction Details
The following table outlines the key parameters of the agreement and the associated equity investment:
| Parameter | Details |
|---|---|
| Agreement Type | Power Purchase Agreement |
| Counterparty | EG Urja Strot Private Limited |
| Energy Supply | 65 MW Hybrid Renewable Energy |
| Tenor | 29 Years |
| Stake Acquisition | 26% |
| Investment Amount | ₹110.18 crore |
| Completion Timeline | June 2027 |
Strategic Equity Investment
As part of the arrangement, Indian Metals & Ferro Alloys will subscribe to 26% of the equity capital in EG Urja Strot Private Limited. The acquisition involves a cash consideration of ₹110.18 crore, payable in one or more tranches. This equity participation aligns the company's energy procurement strategy with a direct ownership interest in the renewable energy supplier. The target entity, incorporated on 6 March 2025, operates in the renewable energy sector, and the transaction does not fall within related party transactions.
Historical Stock Returns for Indian Metals & Ferro Alloys
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.78% | +0.42% | -4.97% | +13.88% | +131.54% | +582.72% |
How will the integration of 25 MWh Battery Energy Storage System impact the operational stability and cost efficiency of Indian Metals' production cycles?
What is the projected return on equity for the ₹110.18 crore investment in EG Urja Strot over the 29-year agreement period?
Will this long-term renewable energy hedge significantly insulate Indian Metals from future volatility in conventional power tariffs?
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