Saurashtra Cement signs 25-year 14 MW wind-solar hybrid power deal
- Saurashtra Cement signed agreements for 14 MW wind-solar hybrid power on September 28, 2026
- Investment of ₹14.92 crore made via purchase of 1,49,22,600 equity shares in Jamnagar Renewables Two
- Agreement tenure is up to 25 years with a 7-year lock-in period
- Transaction structured as Group Captive arrangement under Electricity Rules, 2005
*this image is generated using AI for illustrative purposes only.
Saurashtra Cement has entered into a long-term agreement for 14 MW of wind-solar hybrid power, committing an investment of ₹14.92 crore. The deal involves a Group Captive arrangement to meet the company's power requirements and sustainability objectives.
Agreement structure and parties
The company executed two distinct agreements on September 28, 2026. First, a Power Consumption Agreement was signed with Jamnagar Renewables Two Private Limited (the Power Producer). Second, a Share Purchase & Shareholders' Agreement was entered into with the Power Producer and Continuum Green Energy Limited (the Promoter).
The transaction is structured as a Group Captive Wind-Solar Hybrid arrangement, compliant with Electricity Rules, 2005. The investment takes the form of equity participation rather than a simple power purchase contract.
Key financial and operational terms
The following table outlines the critical parameters of the newly disclosed agreements:
| Parameter | Details |
|---|---|
| Contracted capacity | 14 MW |
| Power type | Wind-solar hybrid |
| Investment amount | ₹14.92 crore |
| Equity stake | 1,49,22,600 equity shares |
| Face value per share | ₹10 |
| Agreement tenure | Up to 25 years |
| Lock-in period | 7 years |
| Execution date | September 28, 2026 |
The proposed equity investment of ₹14.92 crore involves purchasing 1,49,22,600 equity shares of Jamnagar Renewables Two Private Limited at a face value of ₹10 each. The tenure of the agreement extends up to 25 years from the actual commencement date, subject to a mandatory lock-in period of 7 years.
Regulatory and compliance details
The disclosure was made under Regulation 30 read with Part B of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the transaction does not fall within the definition of a related party transaction or a material related party transaction.
The total value of the agreement beyond the initial equity investment is not quantified at this stage, as it depends on actual energy consumption and tariffs over the tenure. The agreements are subject to the receipt of applicable statutory approvals.
Historical Stock Returns for Saurashtra Cement
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.25% | -0.30% | -6.30% | -3.70% | -49.35% | -54.46% |
How will the 25-year power cost structure under this hybrid model compare to Saurashtra Cement's current grid tariff rates?
What specific regulatory approvals are still pending that could delay the project's commencement date?
How does this equity-based captive structure impact Saurashtra Cement's balance sheet leverage compared to traditional debt-financed renewable projects?
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