Shakti Pumps (India) Limited, a prominent player in the energy-efficient pumping and renewable energy solutions space, has announced a fresh business development that further strengthens its footprint in the rapidly expanding solar irrigation market in India. In a regulatory filing made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, the company informed stock exchanges about the receipt of a significant new work order from the Jharkhand Renewable Energy Development Agency (JREDA).

According to the disclosure dated 30 December 2025, Shakti Pumps (India) Limited has received its third order from the state of Jharkhand, reflecting growing trust and repeat engagement from the state’s renewable energy implementing authority. The latest work order pertains to the supply and execution of 1,000 numbers of stand-alone off-grid Solar Photovoltaic Water Pumping Systems (SPWPS) under Component-B of the PM-KUSUM scheme, a flagship initiative of the Government of India aimed at promoting solar energy in the agricultural sector.

Key Highlights of the Jharkhand Solar Pump Order

The total value of the order is approximately ₹21.00 crore, inclusive of Goods and Services Tax (GST). On a base value basis, the work order is valued at ₹19.29 crore, with GST accounting for the remaining amount. The order has been awarded by a domestic entity, namely the Jharkhand Renewable Energy Development Agency, and does not involve any related party transactions or promoter group interest.

Under the terms of the contract, Shakti Pumps will be responsible for the design, manufacture, supply, transportation, installation, testing and commissioning of the solar water pumping systems at various locations across Jharkhand. The comprehensive scope highlights the company’s capability to deliver end-to-end renewable energy solutions rather than merely acting as an equipment supplier.

PM-KUSUM Scheme and Its Importance

The PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme is a transformative national programme designed to enhance energy security for farmers, reduce dependence on diesel pumps and grid electricity, and promote decentralised solar power generation. Component-B of the scheme specifically focuses on the installation of stand-alone solar-powered agriculture pumps in off-grid areas.

By securing this order under PM-KUSUM, Shakti Pumps is directly participating in one of India’s most impactful renewable energy and rural development initiatives. The scheme not only helps farmers lower irrigation costs but also supports India’s broader goals of reducing carbon emissions and increasing renewable energy capacity.

Scope of Work and Execution Timeline

As per the disclosure, the entire project is required to be completed within 120 days from the date of issuance of the Notice to Proceed (NTP). This relatively tight execution timeline underscores the importance of operational efficiency, supply chain robustness and on-ground project management capabilities.

The work includes multiple stages such as system design tailored to site conditions, manufacturing of pumps and solar modules, logistics and transportation to remote locations, installation and commissioning, followed by testing to ensure performance standards. Successfully executing such projects at scale requires deep experience in both manufacturing and field deployment, areas where Shakti Pumps has built considerable expertise over the years.

Strategic Significance for Shakti Pumps India Limited

This latest Jharkhand order adds to Shakti Pumps’ growing order book in the renewable energy segment and reinforces its position as a key beneficiary of India’s solar irrigation push. The fact that this is the third order from Jharkhand indicates a strong working relationship with the state renewable energy agency and satisfactory execution of previous contracts.

For Shakti Pumps, repeat orders from government agencies enhance revenue visibility and strengthen credibility when bidding for similar projects in other states. Solar water pumping systems continue to see strong demand as state governments accelerate implementation of PM-KUSUM targets.

Impact on Business and Growth Outlook

While the company has not specifically quantified the impact of this order on its financials, a ₹21 crore project is meaningful in the context of the renewable energy vertical. Such orders contribute to topline growth, improve capacity utilisation and support long-term scalability in the solar solutions business.

Moreover, government-backed renewable energy projects typically offer stable demand, structured payment mechanisms and lower counterparty risk compared to purely private sector contracts. This helps companies like Shakti Pumps balance their revenue mix and reduce volatility.

Corporate Governance and Regulatory Compliance

The announcement has been made in compliance with SEBI’s disclosure requirements, including SEBI Circular no. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, which mandates detailed disclosure of material contracts and orders. The company has transparently provided information on the awarding authority, nature of the order, execution timeline, commercial value and confirmation regarding the absence of related party transactions.

Such disclosures are critical for maintaining investor confidence and ensuring fair access to material information in the securities market.

Renewable Energy and Solar Irrigation Market in India

India’s solar irrigation market is witnessing rapid expansion driven by policy support, rising fuel costs and the need for sustainable agricultural practices. Solar water pumps offer farmers a reliable and cost-effective alternative to diesel pumps, particularly in remote and off-grid regions.

States like Jharkhand, with significant rural and agricultural populations, are actively implementing PM-KUSUM projects to improve irrigation infrastructure. Companies with proven execution capabilities, such as Shakti Pumps, are well positioned to capitalise on these opportunities.

Investor Perspective

From an investor standpoint, the order announcement is a positive development as it reflects steady order inflows, repeat business from government agencies and alignment with national renewable energy priorities. The absence of promoter interest or related party involvement also reinforces transparency and arms-length dealings.

While execution risks and working capital requirements are inherent in such projects, Shakti Pumps’ experience in handling large-scale solar pump deployments mitigates these concerns to a significant extent.

Conclusion

The ₹21 crore solar water pump order received by Shakti Pumps (India) Limited from the Jharkhand Renewable Energy Development Agency under PM-KUSUM Component-B marks another important milestone in the company’s renewable energy journey. Covering the installation of 1,000 off-grid solar photovoltaic water pumping systems, the project underscores Shakti Pumps’ growing role in supporting India’s clean energy transition and agricultural sustainability goals.

With a defined execution timeline, comprehensive scope of work and backing of a government renewable energy agency, the order adds strength to the company’s order book and enhances long-term growth visibility. As India continues to scale up solar-based irrigation solutions, Shakti Pumps is likely to remain a key participant in this evolving and high-impact segment of the renewable energy ecosystem.

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