Indian Metals & Ferro Alloys Ltd. (IMFA) has acquired a 26% equity stake in renewable energy company EG Urja Strot Private Limited for about ₹110.18 crore and secured 65 MW of hybrid renewable power under a long-term captive arrangement, as ferro alloy and metals companies accelerate decarbonisation and energy security efforts amid rising power costs.
The company has signed a 29-year Power Purchase Agreement (PPA) with EG Urja Strot under the captive consumer framework defined under the Electricity Act, 2003 and Electricity Rules, 2005, for supply of renewable energy to its ferro chrome operations.
The underlying hybrid renewable energy project will comprise 81.4 MW solar capacity, 102.6 MW wind capacity and 25 MWh battery energy storage system (BESS) capacity, of which IMFA will source 65 MW as a captive consumer. The project is targeted for completion by June 2027.
The development comes as energy-intensive industries increasingly shift towards hybrid renewable power and storage-backed supply models to reduce dependence on conventional electricity sources and manage long-term energy costs.
This follows IMFA’s earlier announced 70 MWp hybrid renewable energy sourcing arrangement expected to commence in the second quarter of FY27. With the latest agreement, the company’s contracted renewable energy portfolio will rise to 135 MW.
The company said the arrangement would help renewable energy account for nearly 40% of its overall energy mix in the next fiscal while supporting reliable and cost-effective power supply for operations.
According to the company, around 1.6 lakh tonnes of carbon emissions are expected to be offset annually and nearly 45 lakh tonnes over the duration of the agreement.
“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,” said Binoy Agarwalla, Vice President and Head, Power Business Unit, IMFA.
“The arrangement will support our operations with reliable and competitively priced green power over the long term,” he added.
Agarwalla said the combination of solar, wind and battery storage capacity was expected to improve operational efficiency and provide greater stability in power procurement.
“Building on the strong foundation of our integrated business model, we will continue to pursue opportunities that enhance competitiveness and create sustainable value for stakeholders,” he said.
IMFA, India’s largest fully integrated producer of value-added ferrochrome, currently has installed furnace capacity of 289 MVA capable of producing 434,000 tonnes per annum of ferrochrome. The company also operates captive chrome ore mines and has captive power generation capacity comprising 200 MW coal-based generation and 4.55 MWp solar capacity.
The company said its upcoming greenfield ferro chrome project at Kalinganagar would increase total furnace capacity to 355 MVA, supported by captive chrome ore mining and hybrid renewable power sourcing.