Primo Chemicals to Invest in 50 MW Solar Power Plant, Anticipating Cost Savings of up to Rs. 24 Crores Per Annum

Primo Chemicals Limited announced that its Board of Directors approved an investment in a Special Purpose Vehicle (SPV) to be incorporated for the purpose of owning and operating a 50 MW Solar Power Plant under captive mode on an OPEX model. The proposed investment will result in cost savings of up to Rs. 24 crores per annum upon commissioning and is expected to benefit the company significantly in the long run. The SPV will be incorporated by M/s Sun Photonics Private Limited, and Primo Chemicals will acquire 26% equity stake in the SPV by investing Rs. 21 crores in cash. The SPV will generate and transmit renewable energy (solar power) and supply it to Primo Chemicals Limited at a fixed tariff at the injection point, subject to necessary approvals and compliance with regulations.