Transrail Lighting to Acquire 49 Percent Stake in 990 MW Solar Portfolio

Transmission and Distribution EPC company Transrail Lighting has announced that its Board of Directors has approved the proposed acquisition of a 49 percent equity stake in NOPL Pace Green Energy (NOPL) for a cash consideration of INR 20 crore.
 
The proposed investment marks the company's entry into renewable power generation and expands its presence beyond its core engineering, procurement and construction (EPC) business in the power transmission and distribution sector, the company stated.
 
NOPL is developing a solar power portfolio of approximately 990 MW (AC) in Maharashtra under Component C of the PM-KUSUM scheme. The project aims to solarise agricultural feeders and improve the availability of daytime electricity for irrigation. The portfolio is backed by a 25-year power purchase agreement (PPA) with Maharashtra State Electricity Distribution Company (MSEDCL) at a fixed tariff of INR 3.10 per unit.
 
The indicative total project cost is approximately INR 3,900 crore, with debt financing sanctioned by a reputed financial institution. While Transrail will initially acquire a 49 percent equity stake, the investment structure provides the company with financial and project management control under its agreed arrangements with Onix Renewable. The agreement also allows Transrail to increase its shareholding to potentially 100 percent, subject to mutually agreed terms and applicable approvals.
 
Commenting on the development, Randeep Narang, Managing Director and CEO of Transrail Lighting, said, “This is an important step in our journey from an EPC company to an integrated energy solutions provider. Our entry into solar power generation lets us participate across the full energy value chain from generation to transmission and distribution, apart from our strong manufacturing base for Transmission products. We are proud to foray in India's rapidly growing renewable energy market.”
 
He further added, “On completion of this project, it will contribute towards supply of reliable & green power to farmers, easing irrigation and contributing to the nation's development. We at Transrail will bring speed to the project with our vast experience in managing large infra projects. Such projects will bring steady long-term revenues and margins which will further strengthen our overall growth.”
 
The investment is expected to enable Transrail to leverage its expertise in engineering, procurement, project management and execution of large power infrastructure projects. It will also provide opportunities to participate in project implementation and earn long-term returns from renewable power generation assets. The company expects the move to diversify its revenue streams and create recurring earnings following project commissioning.