DCM Shriram -; ReNew to set up 50MW hybrid solar projects worth Rs800 crore; stock rallies ~4.5%

4 Aug 2022 , 03:20 PM

DCM Shriram Ltd., a leading business conglomerate with a group turnover of Rs9,849 crore, and ReNew Power, India’s leading renewable energy company, have signed two Captive Power Agreements (CPAs) to supply 50 MW of renewable energy from their two upcoming projects in Bhavnagar, Gujarat, to DCM Shriram’s Chlor-Alkali manufacturing facility in Bharuch district, Gujarat.

The combined deal is one of India’s largest renewable energy supply deals in terms of OpEx (operating expenses) with a captive model.

The 50-MW hybrid project, which has a total capacity of 100 MW of wind and solar generation, is expected to generate 250 million units of renewable energy per year exclusively for the DCM Shriram Ltd, Bharuch facility. The CPAs are valid for 25 years and will aid in reducing 2,25,000 tCO2e (carbon emissions) per year.

Ajay S. Shriram, Chairman and Senior Managing Director of DCM Shriram Ltd., stated on the occasion, “We as a group are determined to reduce our energy footprint, and this is a step forward in that direction.  We are thrilled to collaborate with ReNew Power on our renewable energy journey for our Chlor-Alkali manufacturing facility in Bharuch, Gujarat.”

ReNew will establish two hybrid projects with a total investment of Rs800 crore through an Rs63 crore equity partnership by DCM Shriram Ltd.

At around 3.24 PM, DCM Shriram was trading at Rs1,052 per piece, up by 4.46% from its previous closing of Rs1,007.10 on the BSE. The scrip touched intraday high and low of Rs1,052.50 and Rs998 respectively.