Shakti Pumps (India) Limited, one of the country’s leading solar pump manufacturers, has announced a major order win under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme. The company has received a Letter of Award (LoA) from Maharashtra Energy Development Agency (MEDA) for the supply and installation of 4500 Off-grid Solar Photovoltaic Water Pumping Systems (SPWPS) across the state.

This order is valued at Rs 114.58 crore (inclusive of GST) and will be executed under Component B of the MNRE-led PM-KUSUM initiative. The update was shared by the company in a regulatory filing to BSE and NSE dated June 12, 2025, in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Order Details and Scope

The work order has been awarded by MEDA, a government agency that oversees the promotion of renewable energy in Maharashtra. As per the disclosure, the contract involves a complete turnkey solution including:

• Design

• Manufacture

• Supply

• Transportation

• Installation

• Testing

• Commissioning

The order must be completed within 90 days from the issuance of the work order, indicating a strict project timeline and operational efficiency.

Project Significance Under PM-KUSUM Scheme

The PM-KUSUM scheme is a flagship initiative of the Ministry of New and Renewable Energy (MNRE) aimed at promoting renewable energy usage in agriculture. Under Component B, the scheme supports the installation of standalone off-grid solar water pumps to reduce dependency on grid electricity and diesel-powered pumps.

This initiative not only promotes sustainable irrigation but also empowers farmers by reducing their energy costs and dependency on erratic power supply.

By securing this order, Shakti Pumps reinforces its position as a key enabler of clean energy transition in the agricultural sector.

Commercial Value and Strategic Impact

The order size of Rs 114.58 crore is a significant addition to Shakti Pumps’ order book, offering robust revenue visibility in the current financial quarter. Moreover, since this is a government-backed project, the payment cycle and execution logistics are expected to be streamlined.

For a company like Shakti Pumps that is focused on solar-based water solutions, this win underlines the growing demand for renewable irrigation systems in India, especially in agriculture-heavy states like Maharashtra.

No Promoter Involvement or Related Party Transactions

The company has clearly stated in its filing that:

• The promoters or promoter group have no interest in MEDA

• This is not a related party transaction

• The transaction is on an arm’s length basis

This adds transparency and reassures investors regarding the fairness and compliance of the contract.

Investor Disclosure and Regulatory Filing

The announcement was made in line with SEBI's guidelines under Regulation 30, supported by a structured disclosure as per the SEBI circular dated July 13, 2023 (SEBI/HO/CFD/CFD‐PoD‐1/P/CIR/2023/123).

The company also submitted a detailed Annexure I, listing out essential contract details such as the entity awarding the contract, project scope, value, timelines, and promoter involvement.

Such timely disclosures boost investor confidence, especially for retail shareholders and institutional investors who closely monitor governance practices.

Shakti Pumps' Role in Renewable Energy Sector

Shakti Pumps (India) Limited is known for its solar pumping solutions, stainless steel pumps, and smart water management systems. Over the years, it has become a go-to supplier for various state and central government solar pump initiatives, particularly under PM-KUSUM.

Its offerings are well-aligned with India’s climate goals and energy transition roadmap, making it an ideal partner for agencies like MEDA and MNRE.

By leveraging its technical expertise, nationwide network, and R&D capabilities, Shakti Pumps continues to expand its market share in the solar water pump segment.

Execution Timeline and Logistics

The strict 90-day execution timeline for 4500 installations demonstrates the company's agility and operational preparedness. Such tight deadlines necessitate a well-coordinated effort across production, supply chain, engineering, and after-sales support.

In a state as large and diverse as Maharashtra, logistical execution poses a challenge — especially in remote, power-deficient rural areas. Shakti Pumps' previous experience in implementing similar projects will be a crucial asset in this regard.

Wider Implications and Farmer Benefits

The deployment of 4500 solar pumps will have a direct and lasting impact on thousands of farmers across Maharashtra. With solar energy, they gain access to consistent and cost-effective irrigation, leading to better crop yields, reduced input costs, and improved livelihoods.

Additionally, this move supports India's larger vision of doubling farmers’ income and boosting rural employment through green energy.

Conclusion

Shakti Pumps’ latest contract with Maharashtra Energy Development Agency marks another significant milestone in the company’s journey towards becoming a leading clean-tech manufacturer in India. The Rs 114.58 crore project, part of PM-KUSUM Component B, positions the company at the forefront of agricultural electrification through solar energy.

This update under SEBI Regulation 30 not only reflects the company’s growing business momentum but also highlights its commitment to national energy goals, farmer welfare, and sustainable development.

The project will unfold rapidly over the next 90 days, and stakeholders can expect positive financial and social impact outcomes from this strategic contract.

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