In a notable development within India’s renewable energy and biomass sector, Shubhshree Biofuels Energy Limited has bagged a significant supply contract worth ₹22 crore from Maharashtra State Power Generation Company Limited (Mahagenco). This contract underscores the increasing emphasis on sustainable energy practices in the country and represents a strong business opportunity for Shubhshree Biofuels over the next three years.

Contract Overview

The awarded contract pertains to the supply of 25,035 metric tonnes of Non-Torrefied Biomass Pellets over a duration of three years. These pellets will be delivered to Bhusawal Thermal Power Plant, one of Mahagenco's key power generation facilities in Maharashtra. Biomass pellets are an eco-friendly fuel alternative that reduce reliance on coal and help lower greenhouse gas emissions.

This order has been issued by a domestic entity, specifically by Mahagenco, a public sector utility under the Government of Maharashtra. The contract is part of ongoing efforts by the state to integrate renewable and alternative energy sources into the mainstream thermal power sector.

Strategic Importance for Shubhshree Biofuels

Securing this contract marks a significant milestone for Shubhshree Biofuels Energy Limited. As demand for biofuels and green energy alternatives rises in India, companies like Shubhshree are poised to benefit from policy support and expanding market opportunities.

The successful execution of this order will:

• Strengthen Shubhshree’s position in the Indian biomass fuel market.

• Help the company build long-term relationships with state power generation agencies.

• Reinforce the company’s capacity and credibility in delivering bulk orders for biomass pellets.

Environmental Significance of the Contract

Biomass pellets are made from agricultural residues like straw, husks, and other organic materials. The use of Non-Torrefied Biomass Pellets in thermal plants is a crucial step toward achieving India’s carbon neutrality targets. Mahagenco’s initiative to incorporate biomass in its thermal plant operations aligns with broader governmental policies encouraging renewable energy integration in conventional power infrastructure.

Shubhshree’s pellets will directly substitute a portion of coal used at Bhusawal, contributing to emission reductions and better resource utilization.

Financial Scope and Execution Timeline

The total value of the contract stands at approximately ₹22 crore. This value will be realized over three years, translating to a steady revenue stream for Shubhshree Biofuels. The company is expected to manage logistics, storage, and delivery operations efficiently to meet Mahagenco’s quality and timing requirements.

As part of the agreement, Shubhshree will:

• Supply 25,035 MT of Non-Torrefied Biomass Pellets.

• Fulfil deliveries as per scheduled dispatches defined in the purchase order.

• Maintain quality standards laid down by Mahagenco for fuel efficiency and combustion performance.

No Conflict of Interest or Related Party Transactions

An important point clarified in the disclosure is that there is no interest from promoters or promoter group entities in Mahagenco. Moreover, the awarded contract does not fall under related party transactions, which confirms transparent and competitive procurement practices.

This disclosure ensures that stakeholders, including investors, remain confident in the governance and ethical business practices followed by Shubhshree Biofuels.

Industry Outlook

The biofuel and biomass segment in India is witnessing a surge in demand thanks to supportive government policies such as:

• Renewable Energy Purchase Obligations (RPOs).

• National Bio-Energy Mission.

• Incentives for co-firing biomass in coal plants.

Mahagenco’s move to procure biomass fuels is expected to encourage other state utilities and independent power producers to follow suit. Shubhshree’s timely win positions it to leverage future business prospects in this growing segment.

Conclusion

This contract is not just a financial win for Shubhshree Biofuels Energy Limited but also a strategic leap into the mainstream renewable fuel supply chain. With consistent performance, the company stands to gain repeat orders, government support, and market recognition in India’s green energy transformation.

As India transitions toward sustainable energy alternatives, Shubhshree Biofuels' role in reducing carbon footprints through biomass pellet supply will be a significant contribution to the country's climate goals and clean energy roadmap.

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