Indian Solar Energy Projects

Havells’ executive committee approved the strategic investment to secure a 26% shareholding in the special purpose vehicle Kundan Solar (Pali) Pvt Ltd, which has been established to develop, install, operate, and maintain a 15 MWac solar power plant for captive consumption. The transaction value is reported at ₹5.63 crore, and the company intends to enter into a long‑term power purchase arrangement—potentially up to 25 years—with the SPV to supply renewable electricity to Havells’ operations. The stake level is significant because, under Indian electricity regulations, a minimum 26% shareholding in an SPV is commonly required for a corporate buyer to qualify as a captive consumer, enabling Havells to attribute generated power to its own consumption and realize regulatory and accounting benefits.

The investment is presented as part of Havells’ broader strategy to reduce dependence on fossil fuels, lower operational energy costs, and advance its sustainability objectives through onsite or near‑site renewable generation. By taking an equity position in the SPV rather than solely contracting for power, Havells gains a degree of control over project development timelines and offtake arrangements while sharing project‑level risks and returns with the SPV’s promoters. The planned commissioning timeline targets Q2 of FY26–27, and the acquisition is structured in multiple tranches to align with project milestones and regulatory compliance. The arrangement is expected to support Havells’ energy security and decarbonization targets while providing a predictable long‑term supply of solar generation for its Rajasthan facilities, subject to finalization of the PPA terms, project execution, and regulatory approvals.

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