Secures 65 MW hybrid renewable power under long-term captive arrangement

  • IMFA acquires 26% equity stake in EG Urja Strot Private Limited for approximately Rs 110.18 crore
  • Secures 65 MW hybrid renewable power under 29-year captive arrangement
  • Underlying project has total installed capacity of 81.4 MW solar, 102.6 MW wind and 25 MWh BESS
  • Project completion targeted by June 2027
  • Arrangement to support long-term energy security and sustainability objectives
  • About 1.6 tonnes of carbon emission to be offset annually and ~45 lakh tonnes over the course of the agreement

Bangalore,India: Indian Metals & Ferro Alloys Ltd (IMFA; estd 1961), the country’s leading fully integrated producer of ferro alloys, announced the acquisition of a 26% equity stake in EG Urja Strot Private Limited for an aggregate consideration of approximately Rs 110.18 crore.

The company has also executed a 29-year Power Purchase Agreement (PPA) with EG Urja Strot under the Captive Consumer structure as defined under the Electricity Act, 2003 and Electricity Rules, 2005, securing a contracted demand of 65 MW of hybrid renewable power for its ferro chrome operations. The underlying hybrid renewable energy project has a total installed capacity comprising solar capacity of 81.4 MW, wind capacity of 102.6 MW and battery energy storage system (BESS) capacity of 25 MWh, of which IMFA will draw 65 MW as a captive consumer. The indicative timeline for completion of the project is June 2027.

This development follows the previously announced 70 MWp hybrid renewable energy sourcing arrangement, expected to commence in Q2 FY27. With the signing of this agreement, IMFA’s contracted renewable energy supply portfolio stands at 135 MW. About 1.6 tonnes of carbon emission shall be offset annually and ~45 lakh tonnes over the course of the agreement, marking a significant step in IMFA’s transition to cleaner and more sustainable energy sources.

Renewable energy is now expected to account for nearly 40% of the Company’s total energy mix in the next fiscal. It will also help ensure reliable and cost-effective power supply for the company’s operations.

Incorporated on March 6, 2025, EG Urja Strot Private Limited is engaged in the renewable energy business in India.

Commenting on the development, Mr Binoy Agarwalla, Vice President and Head, Power Business Unit, said, “This acquisition is aligned with IMFA’s long-term strategy of strengthening energy security whilst increasing the share of renewable power in our overall energy mix. The arrangement will support our operations with reliable and competitively priced green power over the long term.”

Mr Agarwalla added, “The combination of solar, wind and battery storage capacity is expected to improve operational efficiency and provide greater stability in power procurement. Building on the strong foundation of our integrated business model, we will continue to pursue opportunities that enhance competitiveness and create sustainable value for stakeholders.”