Monte Carlo Fashions has received board approval for incorporating a wholly owned subsidiary to execute its solar power projects under the PM KUSUM-C scheme. The board approved the incorporation of MCFL Energy Projects Private Limited through Resolution No. CIR/MCFL/BOARD/01/2025-26 to undertake solar power generation activities with focused execution capabilities.

Solar Project Portfolio

The company has secured multiple Letters of Award (LoAs) from Madhya Pradesh Urja Vikas Nigam Ltd. (MPUVNL) for solar photovoltaic projects under the Surya Mitra Krishi Feeders Scheme – PM KUSUM-C. These grid-connected solar power projects will be executed in Madhya Pradesh state.

Subsidiary Structure

The board decided to establish a dedicated subsidiary considering the scale of operations, regulatory requirements, and need for focused project execution. MCFL Energy Projects Private Limited will operate as a wholly owned subsidiary with 100% shareholding by Monte Carlo Fashions.

Strategic Diversification

This development represents Monte Carlo Fashions' strategic entry into the renewable energy sector, diversifying beyond its traditional textile business. The subsidiary will focus exclusively on solar power generation and related activities, including execution of solar PV based power projects under government schemes. The substantial project value of ₹147.00 crores demonstrates the company's commitment to establishing a meaningful presence in India's growing renewable energy infrastructure while creating a new revenue stream in the clean energy sector.

Monte Carlo Fashions Limited has secured multiple Letters of Award from Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL) for solar power projects, marking a significant expansion into the renewable energy sector. The company has been awarded 35 MW solar power plants worth approximately ₹147.00 crores under the PM-KUSUM scheme in Madhya Pradesh.

Project Details and Specifications

The awarded project involves the development of solar photovoltaic power generating stations with an aggregate capacity of 35 MW (AC) under the Surya Mitra Krishi Feeders Scheme - PM KUSUM-C. This initiative focuses on setting up grid-connected solar power projects in one district within Madhya Pradesh state.

Financial and Commercial Terms

The project carries substantial financial implications for Monte Carlo Fashions, with the EPC cost estimated at approximately ₹147.00 crores, including GST. The commercial arrangement includes a tariff-based Power Purchase Agreement (PPA) spanning 25 years from the Schedule Commercial Operation Date, providing long-term revenue visibility for the company.

Implementation Timeline and Structure

The project implementation is structured in two distinct phases. The work execution phase is scheduled for completion within 18 months from the award date, followed by a 25-year operational period. This timeline reflects the comprehensive nature of the project, encompassing both the construction and long-term operation of the solar facilities.

The company has confirmed that this project involves a domestic entity and does not constitute a related party transaction. Additionally, Monte Carlo Fashions has clarified that neither the promoter, promoter group, nor group companies have any interest in MPUVNL, the entity awarding the contract.

Strategic Implications

This solar power project represents Monte Carlo Fashions' diversification beyond its traditional textile business into the renewable energy sector. The project aligns with the government's PM-KUSUM initiative, which aims to enhance energy security for farmers and promote sustainable agricultural practices through solar power integration.

The 25-year operational commitment provides the company with a stable, long-term revenue stream from the renewable energy sector, complementing its existing business portfolio. The project's substantial value of ₹147.00 crores indicates Monte Carlo Fashions' significant investment in expanding its operational footprint into clean energy infrastructure.