In a significant step towards enhancing its renewable energy portfolio, the company has announced an investment of up to ₹35 crore in Kurnool Renewables Private Limited, a subsidiary of Ecoren Energy India Private Limited. This investment will secure up to 26% equity in the target entity, aligning with the company's broader sustainability strategy.

Investment Details and Strategic Intent

Kurnool Renewables Private Limited is a Special Purpose Vehicle (SPV) focused on solar and wind energy production. The investment is intended to ensure access to 25.53 MW of renewable energy on a captive consumption basis, offering multiple benefits such as reduced operational energy costs, enhanced energy security, and improved environmental sustainability.

The investment will be executed in three stages over a year:

• 30% within 30 days of agreement execution

• 40% upon placing orders for major equipment

• 30% upon receiving major equipment at the project site

Industry and Market Implications

The move comes at a time when India's renewable energy sector is witnessing robust growth, with increasing investments in solar and wind hybrid projects. Companies are actively pursuing clean energy initiatives to align with national sustainability goals and corporate ESG commitments.

Financial and Regulatory Aspects

The company will subscribe to equity shares issued by Kurnool Renewables Private Limited through cash consideration, ensuring a transparent and structured acquisition process. While no regulatory approvals are required, the target entity will become an Associate of the Company, categorizing it as a related party under the Companies Act, 2013.

Impact on Energy Security and Sustainability

By investing in Kurnool Renewables Private Limited, the company aims to:

• Lower its dependency on conventional energy sources

• Enhance operational efficiency and cost savings

• Promote a sustainable and eco-friendly business model

This initiative also aligns with India's ambitious renewable energy targets, strengthening the company's position as a leader in green energy adoption.

Conclusion and Future Prospects

The investment in Kurnool Renewables Private Limited marks a strategic shift towards long-term energy security and sustainability. As the project progresses, it is expected to deliver cost advantages and environmental benefits, reinforcing the company’s commitment to a clean energy future.

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