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. As part of the deal, the company will acquire a 26% equity stake in the power producer for ₹110.18 crore. This strategic move, scheduled for completion by June 2027, is designed to enhance the company’s access to sustainable energy sources for its operations.
Strategic Power Purchase Agreement
IMFA has formally signed a long-term Power Purchase Agreement with EG URJA STROT PRIVATE LIMITED. The arrangement, which spans 29 years, is structured under the Captive Consumer framework. The agreement ensures a steady supply of hybrid renewable power, specifically targeting a contracted demand of 65 MW, supported by a mix of 81.4 MW solar, 102.6 MW wind, and 25 MWh battery energy storage (BESS) capacity.
Investment Details and Timeline
To support this initiative, IMFA will subscribe to 26% of the equity capital of EG URJA STROT PRIVATE LIMITED. The total cost for this acquisition is set at ₹110.18 crore, which may be deployed in one or more tranches. The project is expected to reach completion by June 2027, positioning the company to integrate greener power solutions into its industrial processes.
Impact on Operations
The primary objective of this acquisition is to secure a reliable, long-term source of renewable energy for IMFA’s business operations. By securing this 65 MW supply, the company strengthens its commitment to energy sustainability. The target entity, incorporated in March 2025, operates within the renewable energy sector in India and currently holds no prior financial turnover, marking this as a focused greenfield entry point for the company’s energy transition strategy.
Source: BSE
