Ferro Alloy firm IMFA acquires 26% stake in renewable energy company EG Urja Strot for Rs 110 crore
New Delhi, May 27: Indian Metals & Ferro Alloys Ltd (IMFA), a fully-integrated producer of ferro alloys, has announced the acquisition of 26% equity stake in EG Urja Strot Private Limited for an aggregate consideration of approximately Rs 110.18 crore.
The company has also executed a 29-year Power Purchase Agreement (PPA) with EG Urja Strot under the Captive Consumer structure as defined under the Electricity Act, 2003 and Electricity Rules, 2005, securing a contracted demand of 65 MW of hybrid renewable power for its ferro chrome operations.
The underlying hybrid renewable energy project has a total installed capacity comprising solar capacity of 81.4 MW, wind capacity of 102.6 MW and battery energy storage system (BESS) capacity of 25 MWh, of which IMFA will draw 65 MW as a captive consumer.
The indicative timeline for completion of the project is June 2027.
This development follows the previously announced 70 MWp hybrid renewable energy sourcing arrangement, expected to commence in Q2 FY27.
With the signing of this agreement, IMFA’s contracted renewable energy supply portfolio stands at 135 MW.
About 1.6 tonnes of carbon emission shall be offset annually and ~45 lakh tonnes over the course of the agreement, marking a significant step in IMFA’s transition to cleaner and more sustainable energy sources.
Renewable energy is now expected to account for nearly 40% of the Company’s total energy mix in the next fiscal.
Commenting on the development, Binoy Agarwalla, Vice President and Head, Power Business Unit, said, “This acquisition is aligned with IMFA’s long-term strategy of strengthening energy security whilst increasing the share of renewable power in our overall energy mix. The arrangement will support our operations with reliable and competitively priced green power over the long term.”
About IMFA
Indian Metals & Ferro Alloys Ltd (IMFA), incorporated in 1961 and headquartered in Bhubaneswar, Odisha, is India’s largest fully integrated producer of value-added ferrochrome with an installed furnace capacity of 289 MVA capable of producing 434,000 tonnes per annum (tpa).
About EG Urja Strot Private Limited:
Incorporated on March 6, last year, EG Urja Strot Private Limited is engaged in the renewable energy business in India.
