Nuvoco Vistas Corporation Limited disclosed that its wholly owned subsidiary, NU Vista Limited, received a show cause notice from the Deputy Commissioner, State Tax (Audit), Central Division, Patna, Bihar.

The notice proposes a demand of ₹10.70 crore under Section 73 of the CGST Act, 2017, for the financial year 2022-23 (FY23). The dispute primarily concerns the denial of Input Tax Credit (ITC) brought forward from the previous year and the imposition of tax on advances received for goods.

Nature of the Dispute

The tax authority has proposed denying credit for ITC brought forward and has also erred in confirming the demand for ITC that was already reversed temporarily. Additionally, the notice proposes imposing tax on advances received for goods. The total proposed demand stands at ₹10,70,08,912. Consequential interest and a penalty of 10% are also proposed against this amount.

Company Response

Nuvoco stated that it will file an appropriate reply against the show cause notice before the Deputy Commissioner. The company asserted that the notice will not be sustained as the demand is contrary to the provisions of the law. It indicated that supporting documents with legal precedents will clearly prove the allegations wrong.

Regarding financial implications, Nuvoco noted that the matter will have no major financial impact on the company. The disclosure was made pursuant to Regulation 30 read with Para B of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Clean Max Enviro Energy Solutions Limited has partnered with Nuvoco Vistas Corporation Ltd to develop a 46.4 MW wind-solar hybrid renewable energy project in Rajasthan. The initiative aims to supply cleaner power to Nuvoco’s cement operations, directly supporting its decarbonisation goals.

The project, located at Bhikamkhore, Rajasthan, will be developed by CleanMax as an Independent Power Producer (IPP). It comprises 20 MW of wind capacity and 26.4 MWp of solar capacity, integrated with a 2 MWh Battery Energy Storage System (BESS). The generated power will be transmitted to Nuvoco via the State Transmission Utility (STU) Open Access network under a group captive structure.

Project capacity and environmental impact

The initiative is designed to generate approximately 100 million units (MU) of renewable electricity annually. By shifting from conventional sources to this hybrid renewable mix, the company expects to avoid approximately 62,023 tonnes of CO2 emissions annually under Scope 2 and 63,463 tonnes of CO2 emissions annually under Scope 1. This reduction aligns with Nuvoco’s broader strategy to lower fossil-fuel consumption and enhance energy efficiency in its manufacturing ecosystem.

Strategic alignment and corporate commentary

Jayakumar Krishnaswamy, Managing Director of Nuvoco, stated that the collaboration strengthens the energy mix across Rajasthan operations while improving long-term cost efficiency. The move is part of the company’s DIRE (Digitalisation, Innovation and Renewables) agenda, which focuses on climate action, water stewardship, and circularity. Kuldeep Jain, Founder and Managing Director of CleanMax, emphasized that manufacturing industries increasingly view clean energy as integral to core operations, noting the need for dependable power for continuous industrial processes.

The partnership reflects the evolving role of renewable energy in supporting the energy requirements of India's industrial sector. As businesses work to improve energy efficiency, manage operating costs and reduce emissions, renewable energy solutions are increasingly being considered as part of long-term energy strategies.

What the numbers show

CleanMax’s operational portfolio in Rajasthan exceeds 525 MW across solar, wind, and hybrid assets, indicating a mature development ecosystem for this new 46.4 MW addition. For Nuvoco, the projected avoidance of over 1.25 lakh tonnes of CO2 highlights a significant operational shift towards sustainability, potentially mitigating future regulatory costs associated with carbon emissions. The split between Scope 1 and Scope 2 emissions underscores the dual benefit of direct fuel substitution and grid decarbonisation.