Promax Power Limited Secures ₹70-75 Crore Solar Power Project from HESCOM
Promax Power Limited has been awarded a ₹70-75 crore solar power project by HESCOM for establishing a 6.0 MW grid-connected facility under the BOO/RESCO model. The 25-year contract offers a tariff of ₹2.97 per unit inclusive of taxes, marking the company's strategic entry into power generation. This development diversifies Promax Power's business beyond traditional EPC services while establishing a long-term recurring revenue stream in the renewable energy sector.
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Promax Power Limited has secured a significant solar power project contract from Hubli Electricity Supply Company Limited (HESCOM), a Government of Karnataka undertaking. The Letter of Award, dated January 7, 2026, marks a strategic milestone for the company as it ventures into the power generation segment.
Project Overview and Financial Details
The awarded project involves setting up a 6.0 MW (AC) grid-connected solar power project under the Build, Own and Operate (BOO)/RESCO model. The contract spans 25 years from the Commercial Operation Date, with an estimated value of ₹70-75 crore over the entire contract period.
| Parameter: | Details |
|---|---|
| Project Capacity: | 6.0 MW (AC) |
| Contract Model: | Build, Own and Operate (BOO)/RESCO |
| Contract Duration: | 25 years from Commercial Operation Date |
| Tariff Rate: | ₹2.97 per unit (inclusive of taxes) |
| Total Contract Value: | ₹70-75 crore (subject to actual generation) |
Contract Terms and Structure
The project operates on a revenue model where Promax Power will receive ₹2.97 per unit of electricity generated, inclusive of all taxes. The total contract consideration of ₹70-75 crore is calculated on an interim basis and remains subject to actual power generation over the 25-year period.
Key operational aspects of the agreement include:
- Grid-connected solar power generation facility
- Long-term power purchase agreement with HESCOM
- Performance-based revenue tied to actual electricity generation
- Complete project ownership and operation responsibility
Strategic Significance
This award represents Promax Power's entry into the power generation segment, diversifying from its core business of turnkey transmission and distribution projects. The company's existing expertise includes EPC services, substations, transmission lines, transformers, and water treatment plants.
The solar project aligns with India's renewable energy objectives while providing Promax Power with a stable, long-term revenue stream. The 25-year contract duration offers predictable cash flows and strengthens the company's position in the renewable energy sector.
Regulatory Compliance
Promax Power disclosed this development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that no promoter, promoter group, or group companies have any interest in HESCOM, and the contract does not constitute a related party transaction.
| Compliance Aspect: | Status |
|---|---|
| Entity Type: | Domestic |
| Promoter Interest: | Nil |
| Related Party Transaction: | No |
| Arms-Length Transaction: | Not Applicable |
The successful award from a government undertaking demonstrates Promax Power's capability to secure projects from established public sector entities, potentially opening doors for similar opportunities in the renewable energy space.
Historical Stock Returns for Promax Power
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | -0.85% | +2.87% | -19.66% | -50.32% | +303.11% |
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