Gujarat-based KPI Global today announced it had secured an order to execute a 12.5 MW solar project under the captive power producer category.
The developer received a letter of intent for the project from Surat-based Anupam Rasayan India, a company engaged in the custom synthesis and manufacturing of specialty chemicals in India.
The entire capital expenditure of INR 43 crore will be funded from Anupam Rasayan’s recently concluded IPO proceeds. The plant will cater to the energy requirements of Anupam Rasayan’s major units. The company operates six manufacturing facilities in Gujarat.
Speaking about the planned investment in renewable energy, Anand Desai, Managing Director of Anupam Rasayan, said, “Environmental sustainability is high in our priority, and we will constantly look into opportunities in this space. It is important for industry players like us to be price-sensitive as well as minimize carbon footprints. The proposed solar plant will help us rationalize our energy costs through an estimated saving of around INR 10 crore per annum for the next 25 years. This is a significant step in terms of ensuring undeterred power supply and transitioning towards cleaner source of energy.”
Captive solar power plants make a lucrative proposition for growing micro, small and medium enterprises (MSMEs). Most manufacturing units in the micro, small and medium enterprise (MSME) segment have poor infrastructure and small roof size, which allows them to meet barely 5-10% of their energy consumption from solar installation, whereas energy consumption accounts for 25-40% of their total manufacturing cost (excluding raw material cost). Some MSMEs involved in the business of foundry, forging and dyeing have even higher energy cost of up to 50%, according to Faruk Patel, Chairman and Managing Director, KPI Global Infrastructure.
By going for captive solar plants, MSMEs can not only contribute in addressing the challenge of global warming but also generate additional cash flows to their business. Ample funding is available for them to make the switch.
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