Solarworld Energy Solutions Limited received a favorable outcome from the Dispute Adjudication Board (DAB) regarding contractual disputes with SJVN Green Energy Limited for two major solar projects in Gujarat.

The Sole Adjudicator passed final reasoned determinations for the 100 MW GUVNL Phase XIII and 260 MW GUVNL Phase XIV Solar PV Projects on September 18, 2026.

Award Details

The company invoked the DAB mechanism under Clause 3.68 of the Conditions of Contract to resolve claims arising from its EPC contracts with SJVN Green Energy Limited, a wholly owned subsidiary of SJVN Limited.

The adjudicator, Er. Harish Kumar Sharma, former Executive Director of SJVN Limited and Impaneled Independent Engineer at the Ministry of Power, issued separate awards for both projects.

Financial Implications

The total awarded value across both projects stands at ₹40.27 crore. This figure comprises a combination of liquid cash outlays and retention monies released against Bank Guarantee or Insurance Surety Bond substitutions.

For the 100 MW project, the company had claimed ₹56.51 crore across twelve heads, including retention monies, overdue supply invoices, delay financing interest, site preservation costs, module insurance, and loss of profit. The DAB admitted ₹13.77 crore.

In the larger 260 MW project, the company claimed ₹162.83 crore across eight heads, covering retention monies, financing interest on DC cables, site operating costs, asset preservation, and loss of profit. The adjudicator awarded ₹26.50 crore.

What the Numbers Show

The financial structure of the awards reveals a significant reliance on non-cash settlements. Of the total ₹40.27 crore awarded, approximately ₹32.39 crore (or 80%) is designated as retention release against security instruments rather than immediate liquid cash. Only ₹7.87 crore represents direct cash outlays. This indicates that while the contractual disputes are resolved in favor of Solarworld, the immediate liquidity impact is limited compared to the total admitted claim value.

Regulatory Disclosure

The company made this disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Clause 8 of Para B of Part A of Schedule III. The information was filed with BSE Limited and the National Stock Exchange of India Limited following the receipt of the physical communication at the corporate office on September 18, 2026, at 3:24 pm.

Solarworld Energy Solutions has approved a strategic joint venture to establish a 2.4 GW solar photovoltaic cell manufacturing facility in Madhya Pradesh. The board sanctioned the agreement on September 7, 2026, marking a significant expansion into backward integration for high-efficiency TOPCon cell production.

The company will partner with Rays Power Infra Limited to operate Rays Green Energy Manufacturing Private Limited as a 50:50 joint venture. This move shifts the deployment of unutilised IPO proceeds from a previously planned subsidiary project to this larger, shared infrastructure model aimed at securing long-term supply chains and reducing third-party supplier dependence.

Financial Commitment Structure

The total financial commitment under the agreements amounts to ₹520 crore. This comprises an equity subscription of up to ₹100 crore by Solarworld Energy Solutions and a separate loan facility of up to ₹320 crore extended to the joint venture entity for project funding.

The initial equity subscription involves acquiring 12,600 shares of Rays Green, representing half of the paid-up capital. The remaining equity stake is held by Rays Power Infra. Governance rights include nominee director appointments and affirmative voting on reserved matters such as capital alterations and material asset disposals.

Variation in IPO Proceeds Utilisation

The board also approved a variation in the objects stated in the September 2025 prospectus. Originally, ₹4,200 million of fresh issue proceeds were earmarked for part-financing a 1.2 GW facility via subsidiary Kartik Solarworld Private Limited. As of June 30, 2026, this amount remained entirely unutilised.

These funds will now redirect towards the new 2.4 GW project located at Mohasa, Narmadapuram District. The revised plan targets commercial production by June 2027. The new facility benefits from established trunk infrastructure and subsidised electricity tariffs of approximately ₹4.30 per unit, enhancing operational cost efficiency compared to the earlier standalone proposal.

Regulatory Approvals and Shareholder Action

The company published a Form PAS-1 advertisement on September 9, 2026, in Financial Express and Jansatta, notifying shareholders of the proposed variation. A special resolution to approve the alteration of prospectus objects is scheduled for the 13th Annual General Meeting on September 30, 2026. No directors voted against the proposal.

What the Numbers Show

The shift from a 1.2 GW subsidiary-led project to a 2.4 GW joint venture doubles the planned manufacturing capacity while maintaining the same level of direct equity exposure from IPO proceeds (₹4,200 million). By leveraging partner capital through Rays Power Infra, Solarworld Energy Solutions aims to achieve economies of scale without increasing its initial cash outlay from public offerings. The estimated project cost of ₹1,000 crore for the new facility translates to approximately ₹417 crore per GW, indicating improved capital efficiency relative to the previous Pandhurana Project estimate of ₹480 crore per GW.