Key Transaction Details

Investment Structure: Board of Directors approved proposed acquisition of 49% equity stake in NOPL Pace Green Energy Private Limited ("NOPL") at a cash consideration of ₹20 crore.

Project Scale: NOPL is developing an aggregate solar power portfolio of approximately 990 MW (AC) in Maharashtra under Component C of the Government of India's PM-KUSUM scheme.

Project Purpose: The project is intended to support solarisation of agricultural feeders and improve availability of daytime electricity for irrigation.

Power Purchase Agreement: Portfolio backed by 25-year Power Purchase Agreement with Maharashtra State Electricity Distribution Company Limited (MSEDCL) at a fixed tariff of ₹3.10 per unit.

Financial Details: Indicative total project cost is approximately ₹3,900 crore. Debt financing has been sanctioned by reputed financial institution, subject to applicable financing and disbursement conditions.

Control Arrangements: Although acquiring 49% equity stake, the investment is structured to provide Transrail with financial and project management control under agreed arrangements with Onix Renewable Limited.

Future Flexibility: Agreement provides flexibility for Transrail to increase its shareholding, potentially up to 100%, subject to mutually agreed terms and applicable approvals.

Strategic Benefits Disclosed

  • Entry into renewable power generation through large solar portfolio with long-term contracted power offtake arrangement
  • Leveraging existing expertise in engineering, procurement, project management and execution of large power infrastructure projects
  • Participation across the value chain in project implementation and long-term returns from renewable power generation asset ownership
  • Diversification beyond EPC business into renewable power generation with potential for recurring earnings after commissioning

Management Commentary

Mr. Randeep Narang, Managing Director & CEO, stated: "This is an important step in our journey from an EPC company to an integrated energy solutions provider. Our entry into solar power generation lets us participate across the full energy value chain from generation to transmission & distribution apart from our strong manufacturing base for Transmission products. We are proud to foray in India's rapid growth renewable energy market. On completion of this project, it will contribute towards supply of reliable & green power to farmers easing irrigation and contributing to nations development. We as Transrail will bring speed to the project with our vast experience in managing large infra projects. Such projects will bring steady long-term revenues and margins which will further strengthen our overall growth."

Conditions and Approvals

Transaction is subject to requisite approvals and completion of agreed conditions.