Rasi Electrodes Limited has received Board approval for a related party contract with M/s Kashyap Wire Products for the supply of solar power. This long-term agreement, renewable for up to five years, entails the supply of solar power generated from the company’s solar power plant. The contract outlines terms for continuous supply, a fixed rate of Rs.7 per unit, and a security deposit from the buyer. The company considers the revenue generated to be not material.
Board Approves Solar Power Supply Agreement
Rasi Electrodes Limited announced on November 14, 2026, that its Board of Directors has approved a related party contract with M/s Kashyap Wire Products. This approval follows a postal ballot resolution by shareholders on March 31, 2026.
Contract Details and Terms
The agreement focuses on the supply of solar power generated from the company’s upcoming Solar Power Plant to M/s Kashyap Wire Products. Key terms include:
- Continuous Supply: Ensuring a steady flow of solar power based on an executed agreement.
- Contract Term: An initial term of five years, with an option for the company to renew for an additional five years.
- Monetary Terms: Solar power will be supplied at a rate of Rs.7 per unit, benchmarked against prevailing market rates. This rate is subject to mutual agreement and periodic Board approval, with potential variations of up to Rs.6 per unit based on changes in TNEB tariff rates or market conditions.
- Estimated Generation: The plant is expected to generate and supply between 10,000 to 14,000 units per month, depending on weather conditions.
- Security Deposit: M/s Kashyap Wire Products will provide a refundable security deposit of Rs.3.50 lakhs.
- Termination: The contract can be terminated by either party with a 3 months’ notice.
Business Context
The company stated that this proposal for the supply of Solar Power is in the ordinary course of business. There are no conflicts of interest with the related party beyond the disclosures made. Considering the anticipated revenue, the contract is not deemed material in nature by the company.
Source: BSE
