Simplex Castings Limited has signed a 25-year Power Purchase Agreement (PPA) with Natraj Energy for sourcing renewable power from a 5.5 MWp captive solar project in Chhattisgarh. The agreement marks a major milestone in the company’s clean energy transition strategy and is expected to deliver significant long-term cost savings while reducing its carbon footprint.
The solar power project will supply electricity to Simplex Castings’ manufacturing facilities located at Bhilai and Tedesara through the Long-Term Open Access (LTOA) mechanism. Under the arrangement, Natraj Energy will undertake the development, ownership, operation, and maintenance of the solar plant, ensuring uninterrupted renewable power supply throughout the duration of the contract.
The partnership has been structured to provide clean energy without requiring substantial upfront capital investment from Simplex Castings. Natraj Energy will be responsible for securing regulatory approvals, establishing grid connectivity, and managing the day-to-day operations of the project. This allows the foundry and engineering products manufacturer to focus on its core business while benefiting from stable and competitively priced renewable energy.
According to company estimates, the captive solar project is expected to generate annual savings of around ₹2.16 crore. The shift from conventional grid power to solar energy is projected to lower electricity costs significantly, improving op erational efficiency and strengthening the company’s financial performance. The agreement also offers protection against future increases in grid power tariffs, providing greater cost predictability over the long term.
Commenting on the development, Ketan Shah, Chairman and Executive Director of Simplex Castings, highlighted the strategic importance of the initiative. He stated that the agreement supports the company’s sustainability objectives while ensuring access to reliable and affordable power for its manufacturing operations. The move is expected to enhance the company’s competitiveness in an increasingly sustainability-focused industrial landscape.
The deal reflects a broader trend among industrial and manufacturing companies in India, many of which are turning to captive renewable energy solutions to reduce energy expenses, improve energy security, and meet environmental, social, and governance (ESG) commitments. Long-term solar PPAs have become an attractive option for businesses seeking stable energy costs and a lower carbon footprint.
With the signing of this 25-year agreement, Simplex Castings reinforces its commitment to sustainable industrial growth and positions itself to benefit from the economic and environmental advantages of renewable energy. The project is expected to contribute meaningfully to the company’s long-term sustainability roadmap while supporting India’s broader clean energy transition goals.
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