Jayaswal Neco Plans Rs 40.97 Crore Investment to Establish Captive Solar Power Units
Jayaswal Neco Industries Limited has announced plans to invest in a Special Purpose Vehicle (SPV) of the Waaree Group to establish solar power generation facilities for its operational needs. The investment is designed to help the company procure captive solar energy for its Steel Plant Division and Chhotedongar Iron Ore Mines.Following a comprehensive technical, commercial, and financial evaluation, Jayaswal Neco Industries Limited executed a Non-binding Term Sheet with a Waaree Group entity. The proposed investment involves approximately Rs 40.97 Crores, to be deployed in one or more tranches.
The goal of this investment is to enable the company to secure solar energy on a captive basis, ensuring compliance with the provisions of the Electricity Rules 2005 under the Group Captive Multiple Consumers Structure.
Project Scope and Technical Details
The proposed solar project is centered around utilizing intra-state solar resources to augment green power usage and negate volatility in Grid Power Tariffs. The captive solar power generation is intended to serve the Steel Plant Division in Raipur and the Chhotedongar Iron Ore Mines located in the Narayanpur District of Chhattisgarh.The key metrics and proposals for the captive power generation facility are detailed below:
| Parameter | Details |
|---|---|
| Capacity | 104 MWAC / 145.60 MWp |
| Location of End Use | Steel Plant Division, Raipur and Chhotedongar Iron ore Mines, Narayanpur District, Chhattisgarh. |
| Objective | Augment Green Power usage, fulfill ESG commitment, negate volatility in Grid Power Tariffs. |
| Anticipated Consumption | ~26.55 Crore Units annually (Current at KWH) |
| Proposed Solar Procurement | ~24.39 Crore Units annually |
| Existing Power Source | CSPDCL |
| Preferred RE Source | Intra-State Solar |
Investment Details
The investment will be channeled into SPVs that are proposed to be incorporated by the Waaree Group. The details concerning the incorporation and nature of the investment are as follows:| Particulars | Details |
|---|---|
| Entity Incorporation | SPV(s) proposed to be incorporated by Waaree Group. |
| Holding Company | Waaree Group Entity (No relation with the Company). |
| Industry | Solar Energy Generation. |
| Line of Business | Setting up, generation and distribution of power from Solar Power Plants. |
| Consideration Type | Cash. |
| Cost of Subscription | Around Rs. 40.97 Crores investment. |
| Shareholding | Less than 20% in one or more SPV(s) to be incorporated. |
The company confirmed that the process of stakeholders' approval and definitive documentation will be undertaken subsequently.
JAYNECOIND Stock Price Movement
On Friday, Jayaswal Neco Industries Limited shares slipped by 1.78% to settle at ₹95.78. The stock struggled throughout the session, trading on a volume of 7.09 million shares, and finding support between a low of ₹94.50 and a high of ₹98.36.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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