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Simplex Castings Signs 25-Year PPA with Natraj Energy for 5.5 MWp Captive Solar Project

Simplex Castings has signed a 25-year PPA with Natraj Energy for a 5.5 MWp captive solar project in Chhattisgarh, expected to reduce its power costs by about INR 2.16 crore annually.

June 11, 2026. By Mrinmoy Dey

Metallurgy and casting solutions company Simplex Castings has announced that the company has entered into a 25-year Power Purchase Agreement (PPA) with Raipur-based Natraj Energy for the supply of clean energy through a captive solar power project under the Long-Term Open Access (LTOA) mechanism in Chhattisgarh.

Under the agreement, Natraj Energy will develop, own, operate and maintain a 5.5 MWp grid-connected solar power plant, which will supply renewable electricity to Simplex Castings' manufacturing facilities at Bhilai and Tedesara through the open-access captive consumption mechanism.

The transition to solar power is going to deliver annual energy cost savings of close to INR 2.16 crore. Prior to this arrangement, the company was sourcing power at INR 9 per unit from the conventional grid. Under the new solar power agreement, Simplex Castings is expected to achieve a saving of close to INR 3 per unit, effectively bringing its net energy cost down to INR 5-6 per unit for the same consumption pattern.

Commenting on the development, Ketan Shah, Chairman and Executive Director, Simplex Castings, said, “This long-term solar power arrangement marks a significant step in Simplex Castings’ sustainability journey. By securing clean energy at a predictable tariff over a 25-year horizon, we are simultaneously strengthening our commitment to responsible manufacturing and meaningfully improving our energy cost structure. The annual savings of approximately INR 2 crore reflect the tangible financial value of this initiative, which adds to our margins, alongside its environmental benefits.”

The arrangement has been structured on a cash-neutral basis, enabling the company to participate in the project economics without material upfront capital outlay.

Natraj Energy will assume full responsibility for project development, statutory and regulatory approvals, grid connectivity, long-term open access arrangements, and operations and maintenance of the solar facility throughout the 25-year term, stated the company.

Tags:

Solar PV

Simplex Castings

Natraj Energy

Solarising C and I segment

Captive solar projects in Chhattisgarh

Open Access Solar Projects

Ketan Shah