Cummins India has approved the acquisition of equity shares in Clean Max Yellowstone Private Limited, investing up to Rs. 2.70 Cr. This investment secures at least 8.78% of Clean Max’s equity, facilitating renewable power (Solar/wind/hybrid) for Cummins’ facilities. The move aligns with a Group Captive Model involving other Cummins entities, ensuring compliance with electricity regulations and promoting sustainable energy use.
Strategic Investment in Clean Energy
Cummins India’s Board of Directors has approved an investment of up to Rs. 2.70 Cr to acquire equity shares of Clean Max Yellowstone Private Limited (“Clean Max”). This investment will represent at least 8.78% of the equity share capital of Clean Max.
Group Captive Power and Regulatory Compliance
The investment will be made alongside other Cummins group entities in India under a Group Captive Model. Collectively, the Cummins group will hold at least 26.00% of the equity share capital of Clean Max. This structure complies with regulatory requirements for group captive power plants as outlined in the Electricity Act, 2003.
Share Purchase Agreement Details
A Share Purchase Agreement (SPA) has been signed, with the closing subject to specific terms and conditions outlined in the agreement.
Clean Max Yellowstone: Project Overview
Clean Max Yellowstone Private Limited, incorporated on September 23, 2024, is focused on developing and operating renewable energy projects, specifically offsite captive solar/wind/hybrid power generating plants.
Clean Max is currently a 100% subsidiary of Clean Max Enviro Energy Solutions Limited.
Rationale for the Investment
This investment allows Cummins India, along with other entities, to qualify as a group captive consumer, thereby reducing Scope 2 greenhouse gas (GHG) emissions and optimizing power costs for its facilities.
Source: BSE