CESC 's subsidiary Purvah Green Power Private Limited has issued a binding letter of intent to Klasscorp Solutions Private Ltd for consultancy services related to a 250 MW wind farm project in Karnataka, marking the company's expansion into renewable energy.

Project Details

The consultancy engagement focuses on a substantial wind farm development at Bijapur CTU in Karnataka state. Purvah Green Power, a subsidiary of CESC Limited, has formalized the arrangement through a binding letter of intent for comprehensive project support services.

Consultancy Scope

The letter of intent covers various consultancy services for land acquisition related to setting up the wind farm project. Klasscorp Solutions, identified as a domestic entity, will provide comprehensive support services for the project development and execution phases.

The agreement structure includes provisions for signing definitive agreements, with the LOI remaining valid for one year from the execution date or until definitive agreements are signed, whichever occurs earlier.

Strategic Significance

This binding letter of intent represents CESC's strategic approach to renewable energy development through specialized consultancy partnerships. The 250 MW capacity indicates a substantial investment in wind energy infrastructure, positioning the company to capitalize on Karnataka's favorable wind energy potential.

The company has confirmed that promoter/promoter group/group companies of Purvah have no interest in Klasscorp, ensuring this is not a related party transaction. This transparent approach demonstrates CESC's commitment to proper corporate governance in its renewable energy expansion.

Wind Energy Expansion

The Karnataka wind farm project aligns with India's renewable energy objectives and CESC's diversification strategy. The Bijapur CTU location in Karnataka offers strategic advantages for wind energy development, supported by the state's established renewable energy infrastructure and policy frameworks.

This consultancy agreement marks an important step in CESC's renewable energy journey, demonstrating the company's systematic approach to clean energy infrastructure development through professional partnerships and strategic planning.

CESC Limited has announced a significant development in the renewable energy sector through its subsidiary's partnership for a major wind energy project in Andhra Pradesh. The company informed stock exchanges about this strategic collaboration under regulatory disclosure requirements.

Contract Partnership and Scope

Deshraj Solar Energy Private Limited, a subsidiary of CESC Limited, has entered into a tower supply contract with Toolfab Renewable Energy Infra Private Limited. Under this agreement, Toolfab will supply 91 wind turbine generator towers for a substantial 300MW renewable energy project.

Project Location and Strategic Development

The wind project will be developed across two villages in Andhra Pradesh - Ralla and Kurburahalli. This strategic location selection aligns with the state's focus on renewable energy development and wind power generation capabilities. The 300MW capacity represents a significant addition to the region's clean energy infrastructure.

Implementation and Delivery Framework

Toolfab Renewable Energy Infra Private Limited will handle all necessary arrangements to ensure timely delivery of the 91 towers to Deshraj Solar Energy. The company has committed to completing deliveries within 12 months from the date of receiving the notice to proceed, providing a clear timeline for project implementation.

Regulatory Compliance and Transaction Structure

CESC Limited has confirmed that this contract does not constitute a related party transaction. The company stated that promoters, promoter groups, or group companies of Deshraj have no interest in Toolfab Renewable Energy Infra Private Limited. This disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Toolfab Renewable Energy Infra Private Limited operates as a domestic entity with CIN U42209KA2024PTC191977, ensuring compliance with local regulatory frameworks for the wind energy sector.