IMFA secures 65 MW of hybrid renewable power with ₹110 cr investment
IMFA is taking a 26% stake in EG URJA STROT to lock in long-term captive power for its ferrochrome operations through a 29-year agreement.
What's new
- IMFA signed a 29-year PPA for 65 MW of hybrid solar, wind, and battery power.
- The company is investing ₹110.18 crore for a 26% equity stake in EG URJA STROT.
- The deal replaces a previously terminated 40 MW renewable power agreement.
Why this matters
Securing long-term captive power is a necessity for power-intensive ferrochrome production. By replacing a failed 40 MW contract with a larger 65 MW hybrid arrangement, IMFA stabilizes its energy costs for the long term.
What we're watching
- The project completion timeline leading up to the June 2027 closing date.
- Any future disclosure on the specific cost savings or margin impact of this PPA.
- The operational performance of the hybrid solar-wind-battery storage mix.
The full read
Indian Metals & Ferro Alloys is locking in its energy supply for the next 29 years. The company signed a 65 MW hybrid renewable power purchase agreement with EG URJA STROT, a firm incorporated in March 2025. To secure this captive supply, IMFA is investing ₹110.18 crore for a 26% equity stake. This move replaces a terminated 40 MW renewable contract, providing a larger and more stable energy source for its power-intensive ferrochrome production. While the ₹110.18 crore outlay represents only 1.4% of IMFA's market cap, the strategic value of securing long-term renewable energy is high for a ferroalloys producer. The deal is binding and slated to close by June 2027. The company has yet to quantify the specific cost savings or margin impact, but the move effectively mitigates the risk of energy price volatility.
Questions answered
- What is the nature of the power purchase agreement?
- It is a 29-year binding agreement for 65 MW of hybrid renewable energy, which includes solar, wind, and battery storage capacity.
- How much is IMFA investing in this project?
- IMFA is investing ₹110.18 crore to acquire a 26% equity stake in the power producer, EG URJA STROT.
- Why is this deal happening now?
- The agreement replaces a previously terminated 40 MW renewable power contract, ensuring the company maintains a steady supply of captive power for its ferrochrome operations.
- When will the deal be finalized?
- The transaction is expected to close by June 2027.