Sunflag Iron and Steel has entered into a long-term power purchase agreement with Sunsure Energy’s special purpose vehicle, Sunsure Solarpark Thirty Seven. The agreement allows Sunflag to source solar energy in captive mode from an 11 MW under construction solar project in Dhule, Maharashtra for a period of 25 years.
Additionally, as a part of the arrangement, Sunflag will invest Rs 57.25 million to acquire and maintain a 26 per cent equity stake in the power producer. The investment will be made in tranches, and regulatory approvals are not required for this transaction.
Sunsure Solarpark Thirty Seven will be responsible for the development, construction, operation, and maintenance of the project. Furthermore, this partnership is part of Sunflag’s environmental, social, and governance goals to reduce its carbon footprint by sourcing renewable energy.
