Indian Metals & Ferro Alloys Limited (IMFA) has mutually agreed to terminate its Power Purchase Agreement and Share Subscription and Shareholders Agreement with Ampin Energy Utility One Private Limited. The termination, effective 14th May 2026, stems from delays in project timelines and approvals. IMFA will receive a full refund of its ₹12.32 crore investment, which represented a 4.36% stake in the renewable energy developer.
Termination of Renewable Power Project
IMFA has formally concluded its partnership with Ampin Energy Utility One Private Limited regarding a hybrid renewable energy project. The agreement, originally signed in May and June 2025, was intended to supply 40 MW of contracted hybrid power, consisting of 58 MW AC of solar and 58 MW of wind capacity. Due to unforeseen delays in securing necessary project approvals and reaching delivery milestones, both parties have reached a mutual decision to end the contract as of 14th May 2026.
Financial Impact and Investment Recovery
As part of the initial collaboration, IMFA had acquired 1,23,20,000 equity shares in the project entity for a total consideration of ₹12.32 crore, resulting in a 4.36% equity stake. Under the terms of the termination agreement, this entire investment amount will be refunded to the company. The termination ensures that capital is protected while the company reassesses its renewable energy procurement strategy.
Future Outlook
Despite the termination of this specific agreement, the company remains committed to integrating sustainable energy into its operations. Management has confirmed that they are currently in advanced discussions with an alternative hybrid renewable energy developer. The company anticipates finalizing and signing new binding documents within the first quarter of the 2027 fiscal year (Q1FY27), with further details to be shared as the process progresses.
Source: BSE
