Shree Krishna Paper Mills to Acquire 26.5 Percent Stake in Solar Project Firm, Signs Power Purchase Pact

Shree Krishna Paper Mills & Industries Ltd (SKPMIL) has approved an investment in renewable energy company Ratan Green Projects One Pvt. Ltd. (RGPOPL), alongside signing a power purchase agreement (PPA) to source solar power as a captive user.

The decision was taken at the company’s board meeting held recently. Under the agreement, RGPOPL will supply solar power from its upcoming Rajasthan project, comprising an 8.5 MW AC / 12 MWp DC plant and a 1.3 MWh battery energy storage system (BESS) in Pali district.

As part of the arrangement, SKPMIL will subscribe to 26.5 perecent of RGPOPL’s equity share capital in two tranches, with a total investment of up to INR 3.10 crore. The first tranche of INR 93 lakh will be invested within 30 days of the agreement, while the remaining INR 2.17 crore will be infused ahead of the project’s commercial operation date.

The investment is aimed at meeting captive power consumption requirements under electricity regulations, which mandate a minimum 26 percent equity stake for captive users. The company will also enter into a share subscription and shareholders’ agreement with RGPOPL.