Indian Metals & Ferro Alloys Limited (IMFA) has entered into a Power Purchase Agreement with EG Urja Strot Private Limited to secure ~65 MW of hybrid renewable power. The company will acquire a 26% equity stake in the power producer for a total investment of ₹110.18 crore. This strategic move aims to bolster the company’s energy transition efforts, with the project completion targeted for June 2027.
Strategic Renewable Energy Partnership
Indian Metals & Ferro Alloys Limited has finalized a long-term Power Purchase Agreement spanning 29 years with EG Urja Strot Private Limited. This agreement centers on the supply of hybrid renewable energy, comprising a contracted demand of 65 MW. The energy mix includes a solar capacity of 81.4 MW, wind capacity of 102.6 MW, and Battery Energy Storage System (BESS) capacity of 25 MWh, operating under a captive consumer structure.
Investment Details and Timeline
To support this project, the company is set to acquire 26% of the equity capital in EG Urja Strot Private Limited. The total cost of this acquisition is ₹110.18 crore, which will be paid through cash consideration in one or more tranches. This transaction is considered an arm’s length deal and does not involve any related party interests.
Future Impact and Objectives
The primary objective of this acquisition is to secure a stable and sustainable ~65 MW renewable power supply for the company’s operations. The acquired entity, incorporated on March 6, 2025, currently holds no turnover history, reflecting its nature as a newly established project vehicle. The company has set June 2027 as the indicative timeline for the completion of this strategic investment.
Source: BSE
