Ravindra Energy Limited announced on January 9, 2026, that it has secured 13 Letter of Awards (LOA) from Hubli Electricity Supply Company Limited (HESCOM) for solar power projects with an aggregate capacity of 62 MW. The projects will be developed under the Build Own & Operate (BOO) model across HESCOM's jurisdiction in Karnataka state.

Project Overview and Financial Details

The solar power projects represent a significant business opportunity for Ravindra Energy Limited, with an estimated capital expenditure of approximately ₹225 crores. The projects are strategically distributed across 13 sub-stations of HESCOM, ensuring geographical diversification within Karnataka state.

Contract Terms and Timeline

HESCOM will enter into a 25-year Power Purchase Agreement (PPA) with Ravindra Energy Limited, providing long-term revenue visibility for the company. The contract structure offers stable cash flows over the extended operational period, with power sales at ₹2.95 per unit.

The company faces a commissioning timeline of 12 months from the date of Power Purchase Agreement execution. This timeline requires efficient project management and execution capabilities to meet the contractual obligations within the specified timeframe.

Strategic Significance

The projects fall under the domestic renewable energy sector, with HESCOM being a Karnataka Government-owned utility company. This partnership strengthens Ravindra Energy Limited's position in the state's renewable energy landscape and demonstrates the company's capability to secure substantial solar power contracts.

Regulatory Compliance

The announcement was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the contracts do not involve any related party transactions and that promoters have no interest in the awarding entity.

The projects represent a significant addition to Ravindra Energy Limited's renewable energy portfolio, positioning the company for sustained growth in Karnataka's solar power sector. The 25-year operational period provides long-term revenue certainty, while the Build Own & Operate model ensures complete project control and operational flexibility.

Ravindra Energy Limited has provided a corporate guarantee of ₹135.00 crores to its associate entity Energy In Motion Limited (EIM) for credit facilities sanctioned by YES Bank Limited. This development follows the company's earlier postal ballot notice seeking shareholder approval for increased financial assistance to EIM.

Corporate Guarantee Details

The company disclosed that it has provided corporate guarantee/undertaking to EIM for financial assistance facility availed from YES Bank Limited. The guarantee is within the limits previously approved by shareholders at the Extraordinary General Meeting held on June 20, 2025.

Credit Facility Structure

YES Bank Limited has sanctioned comprehensive financial assistance to EIM, comprising various fund-based and non-fund-based credit facilities.

Previous Shareholder Approvals

Earlier, REL had sought shareholder approval through postal ballot to increase financial assistance limits to EIM from ₹300 crores to ₹1,300 crores. The proposed assistance structure included:

Related Party Transaction Context

The transaction involves related party considerations as Mr. Narendra Murkumbi, one of the promoters of REL, serves as a common director in both REL and EIM. However, the company has confirmed that the corporate guarantee is extended on an arm's length basis.

Business Rationale and Impact

The corporate guarantee is designed to help EIM obtain credit facilities at competitive terms from YES Bank Limited and expand its business operations in the electric vehicle sector. As a non-fund based contingent liability, the guarantee has no immediate financial impact on REL's balance sheet.

With EIM being positioned as REL's strategic associate in the electric vehicle business and having a substantial paid-up capital of ₹100 crores, this financial support aligns with REL's broader strategy to strengthen its presence in the evolving energy and mobility sectors.