Pritika Group Secures 25-Year Solar Power MOU, Targets ₹110 Crore Savings
Pritika Engineering Components Limited, a key part of the Pritika Group of Industries, has secured a long-term renewable energy partnership, signing a Memorandum of Understanding (MoU) with Spark Grid Private Limited. This agreement covers the supply of solar power at a competitive rate over a period of 25 years, significantly strengthening the Group’s sustainability agenda.The long-term solar power arrangement is expected to deliver substantial cost efficiencies to the Pritika Group of Industries, estimating total savings of approximately ₹110 crore over the 25-year tenure.
Strategic Benefits and Financial Breakdown
The expected savings are distributed across the Group's subsidiaries. Pritika Engineering Components Limited and Meeta Castings Limited are anticipated to benefit from approximately ₹70 crore in savings, with the remaining savings allocated to Pritika Auto Industries Limited.To implement this initiative, a Special Purpose Vehicle (SPV) will be established for the solar power project. On behalf of the Pritika Group of Industries, Pritika Engineering Components Limited is expected to hold a 26% equity stake in the SPV, subject to the completion of necessary approvals and documentation.
The initiative aligns with the Group's broader objectives of improving operational efficiency, reducing long-term energy costs, and increasing the contribution of renewable energy to its power requirements.
Management Perspective
Commenting on the agreement, Mr. Harpreet Singh Nibber, Chairman and Managing Director of Pritika Engineering Components Limited, stated that the long-term solar power arrangement represents a crucial step toward enhancing energy efficiency and establishing sustainable cost advantages across the Group.He noted that the competitive tariff offered over 25 years is projected to generate savings of around ₹110 crore for the Group, including approximately ₹70 crore for Pritika Engineering Limited. The proposed SPV structure, which involves Pritika Engineering Components holding 26% equity, will allow the company to participate in the renewable energy opportunity while supporting the Group’s sustainability mandate.
This arrangement is set to boost the Group's long-term cost competitiveness and reinforce its commitment to adopting cleaner and more sustainable energy sources.
About Pritika Engineering Components Limited
Pritika Engineering Components Limited, a subsidiary of Pritika Auto Industries Limited, is a leader in manufacturing precision machined components for the tractor and automotive sectors. The company operates a state-of-the-art facility and is certified under IATF 16949:2016. It specializes in producing components such as Machined Transmission Housings/Gear Boxes, Machined Front Axle Support, and Machined Lift Housings, maintaining the legacy of excellence set by the Pritika Group.PRITIKA Stock Price Movement
As of 11:38 AM, shares of Pritika Engineering Components Limited are holding firm at ₹59, maintaining the previous day's valuation with no intraday movement recorded so far. The stock has seen a traded quantity of 6000 in the live market thus far today.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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