Indian Metals & Ferro Alloys Ltd (IMFA) has acquired a 26 percent equity stake in renewable energy company EG Urja Strot Private Limited for nearly ₹110.18 crore as the ferrochrome producer accelerates its renewable energy transition and strengthens long-term energy security for its operations.
Along with the acquisition, IMFA has signed a 29-year Power Purchase Agreement (PPA) with EG Urja Strot under the captive consumer framework to procure 65 MW of hybrid renewable power for its ferrochrome manufacturing business.
The hybrid renewable energy project will combine:
- 81.4 MW solar capacity
- 102.6 MW wind capacity
- 25 MWh Battery Energy Storage System (BESS)
The project is expected to be completed by June 2027.
According to the company, IMFA will source 65 MW power as a captive consumer from the integrated renewable energy project. The latest agreement further strengthens the company’s clean energy portfolio and comes in addition to its previously announced 70 MWp hybrid renewable energy sourcing arrangement, which is expected to begin from the second quarter of FY27.
With the addition of the new agreement, IMFA’s total contracted renewable energy portfolio has now increased to 135 MW.
The company said renewable energy is expected to contribute nearly 40 percent of its overall energy mix during the next fiscal year, helping improve power stability while reducing long-term energy costs for its industrial operations.
Commenting on the development, Binoy Agarwalla, Vice President and Head of Power Business Unit at IMFA, said the acquisition aligns with the company’s long-term strategy of improving energy security and increasing renewable energy integration across its operations.
He added that the combination of solar, wind and battery energy storage systems is expected to improve operational efficiency and provide more stable power procurement over the long term.
The company also stated that the renewable energy arrangements are projected to offset nearly 1.6 lakh tonnes of carbon emissions annually and around 45 lakh tonnes over the full duration of the agreement.
Founded in 1961 and headquartered in Bhubaneswar, IMFA is India’s largest fully integrated producer of value-added ferrochrome. The company currently operates furnace capacity of 289 MVA with annual ferrochrome production capacity of 4,34,000 tonnes.
Apart from ferrochrome manufacturing, the company also owns captive chrome ore mines along with coal-based and solar power generation assets.
IMFA is currently expanding its ferrochrome operations through a greenfield project at Kalinganagar, which is expected to increase its total furnace capacity to 355 MVA, equivalent to around 5,34,000 tonnes annually.
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