Transrail Lighting will invest ₹20 crore to acquire a 49% stake in NOPL Pace Green Energy. This move marks the company’s entry into renewable power. They plan to develop a 990 MW solar portfolio in Maharashtra. Randeep Narang said, "The investment was a step towards expanding the company's presence."
Transrail Lighting will acquire a 49% stake in NOPL Pace Green Energy for ₹20 crore, entering renewable power by developing a 990 MW solar portfolio in Maharashtra backed by a 25-year PPA. The deal includes an option to increase its shareholding to 100%.
Transrail Lighting Ltd has approved an investment of ₹20 crore to acquire a 49% stake in NOPL Pace Green Energy Pvt Ltd, marking its entry into renewable power generation.
In a regulatory filing on Monday, October 19, the company said the proposed acquisition is subject to the necessary approvals and completion of agreed conditions.
NOPL is developing a solar power portfolio with a capacity of around 990 MW (AC) in Maharashtra under Component C of the Centre's PM-KUSUM scheme. The project aims to help shift agricultural electricity connections to solar power and ensure farmers have better access to electricity for irrigation during the day.
25-year power supply agreement
The project is backed by a 25-year power purchase agreement (PPA) with Maharashtra State Electricity Distribution Company Ltd (MSEDCL), under which electricity will be supplied at a fixed rate of ₹3.10 per unit.
The total project cost is estimated at around ₹3,900 crore. A financial institution has approved debt financing for the project, subject to the applicable financing and fund-disbursement conditions, Transrail said.
While Transrail will initially hold a 49% stake in NOPL, the investment arrangement provides for financial and project management control under agreements with Onix Renewable Ltd.
The agreement also gives Transrail the option to increase its stake to as much as 100%, subject to mutually agreed terms and the required approvals.
Transrail looks beyond infrastructure projects
The investment will allow Transrail to expand beyond its core engineering, procurement and construction (EPC) business into generating renewable power. The company expects to take part in executing the project and owning the solar assets over the long term.
Once the project becomes operational, Transrail could earn recurring revenue from the solar assets, adding a new source of income alongside its existing infrastructure business.
Randeep Narang, Managing Director and CEO of Transrail Lighting, said the investment was a step towards expanding the company's presence across the energy value chain, from power generation to transmission and distribution.
Narang said Transrail would draw on its experience in executing large infrastructure projects to support the development. He added that projects of this kind could provide more predictable long-term revenue and margins.