MSP Steel Seals Power Purchase Agreement to Secure 10MWp Solar Energy Capacity
MSP Steel and Power Limited has entered into a significant Power Purchase Agreement (PPA) with Elevate Solar Energy Private Limited, securing a supply of solar power for its operations. The agreement, effective from the date of execution, aims to optimize energy costs and boost the company's renewable energy consumption through a Group Captive Open Access Permissions mechanism.The PPA covers the procurement of solar power from Elevate Solar Energy Private Limited. Under the terms of the agreement, MSP Steel is contracted to receive 10MWp (DC) of electricity annually. The agreed tariff rate for this power supply stands at Rs 3.17 per unit, and the duration of the contract spans 25 years.
The solar generation facility is being developed by Elevate Solar Energy Private Limited in Baloda Bazar District of Chhattisgarh. This facility possesses an installed capacity of 70 MWP (DC) or 50 MW (AC). Of this total capacity, 10 MWp(DC) has been designated for the captive consumption of MSP Steel & Power Limited.
A key element of the business arrangement includes the company's commitment to acquire a stake in the Generator. According to the agreement terms, MSP Steel will acquire a 26% shareholding in Elevate Solar Energy Private Limited, corresponding to their contracted energy quantity, as stipulated in a Shareholders' Agreement yet to be executed.
The transaction has been deemed non-related, confirming that both parties are operating outside of any affiliated promoter group structure. The agreement encompasses various critical terms, including obligations of both parties, force majeure clauses, dispute resolution mechanisms, and representations and warranties.
Key details of the Power Purchase Agreement:
| Metric | Detail |
|---|---|
| Consumer | MSP Steel and Power Limited |
| Generator | Elevate Solar Energy Private Limited |
| Facility Capacity | 70 MWP (DC) / 50 MW (AC) |
| Contracted Quantity | 10MWp (DC) per annum |
| Tariff Rate | Rs 3.17 per unit |
| Agreement Term | 25 Years |
| Equity Stake Acquired by MSP | 26% of shareholding in Elevate Solar Energy Private Limited |
MSPL Stock Price Movement
Today, MSP Steel & Power Limited shares edged higher to close at ₹42.21, gaining 1.21% in the session. The stock saw significant activity, with 5.71 million shares trading during the day.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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