Transrail Lighting to take 49% stake in Rs 3,900-crore Maharashtra solar project

The board of directors of Transrail Lighting Limited, a leading engineering, procurement and construction (EPC) company in the power transmission and distribution sector, has approved acquiring a 49 per cent equity stake in NOPL Pace Green Energy Private Limited ("NOPL").

The deal is for a cash payment of Rs 20 crore. The acquisition will be completed only after the required approvals are received and conditions are met.

NOPL is building a large solar power portfolio of about 990 MW (AC) capacity in Maharashtra under Component C of the Government of India's PM-KUSUM scheme. The main aim of the project is to solarise agricultural feeders in Maharashtra, so that farmers in the state get a steady supply of green electricity during the day for irrigation.

For this project, worth about Rs 3,900 crore, a 25-year power purchase agreement has been signed with the Maharashtra State Electricity Distribution Company Limited (MSEDCL, or Mahavitaran). The price of electricity is fixed at Rs 3.10 per unit. A loan for the project has also been sanctioned by a reputed financial institution.

Under the agreements with Onyx Renewable Limited, Transrail will initially get financial and management control of the project with a 49 per cent equity stake. Later, Transrail will also have the option to raise the stake to 100 per cent on mutually agreed terms.

Commenting on the strategic expansion, Randeep Narang, Managing Director and CEO of Transrail, said: "This is an important milestone in our journey from being just an EPC company to becoming an 'integrated energy solutions provider'. Entering solar power generation will give us the chance to work across the entire energy value chain, from power generation to transmission and distribution, alongside manufacturing transmission products. This project will make irrigation easier by giving farmers in Maharashtra reliable power. It will give the company stable, long-term revenue and profit, which will further speed up our overall growth."

The project will help Transrail move beyond its EPC business into renewable energy generation and earn a regular income over the long term.