Pritika Group signs 25-Year Solar Power MOU, Targeting ₹110 Crore Savings

Pritika Group signs 25-Year Solar Power MOU, Targeting ₹110 Crore Savings​

Pritika Engineering Components Limited, a subsidiary of Pritika Auto Industries Limited, has signed a Memorandum of Understanding (MoU) with Spark Grid Private Limited. The deal centers on the supply of solar power at a competitive rate over a 25-year period, significantly strengthening the Pritika Group of Industries' sustainability agenda.

The long-term solar power arrangement is projected to yield substantial cost efficiencies for the Pritika Group. The estimated savings over the 25-year tenure are approximately ₹110 crore.

Pritika Engineering Components Limited and Meeta Castings Limited are set to benefit with estimated savings of approximately ₹70 crore. Pritika Auto Industries Limited will realize the balance of the savings over the same period.

To execute the project, a Special Purpose Vehicle (SPV) will be established. Pritika Engineering Components Limited is expected to hold 26% equity in the SPV, representing the Pritika Group of Industries, pending the completion of applicable approvals and documentation.

This initiative underscores the Group's commitment to enhancing operational efficiency, mitigating long term energy costs, and boosting the contribution of renewable energy to its power requirements. The agreement is anticipated to provide greater visibility on energy costs while advancing the Group's sustainability objectives.

Management Perspective​

Commenting on the long term solar power arrangement, Harpreet Singh Nibber, Chairman and Managing Director of Pritika Auto Industries Limited, stated that the deal marks a crucial step in enhancing energy efficiency and creating sustainable cost advantages across the Group.

Mr. Singh Nibber noted that with a highly competitive tariff rate spanning 25 years, the arrangement is expected to result in savings of around ₹110 crore for the Group, including approximately ₹70 crore for Pritika Engineering Limited.

The proposed SPV structure, where Pritika Engineering Components holds 26% equity on behalf of the Group, is expected to allow participation in this long term renewable energy opportunity. This, he added, will contribute to the Group's commitment toward adopting cleaner and more sustainable energy sources and strengthen the Group's cost competitiveness over the long term.

PRITIKAUTO Stock Price Movement​

Pritika Auto Industries is gaining momentum, trading up 2.94% to ₹17.83 as of 11:28 AM in the live market session. The stock shows healthy demand, with a volume of 114,368 shares traded during the current activity period.