Rama Steel Tubes Limited Steps into Renewable Energy with Stake in 225 MW PM-KUSUM Solar Power Project

Rama Steel Tubes Limited (RSTL), a leading name in the steel tubes and pipes manufacturing sector, is pleased to announce a update strategic investment in the renewable energy space through its participation as a Joint Venture (JV) partner in a 225 MW solar power project under the Government of India's ambitious PM-KUSUM scheme.

The project, structured under Onix IPP, a Special Purpose Vehicle (SPV), is spread across multiple locations in Maharashtra. It has successfully signed Power Purchase Agreements (PPAs) with the Maharashtra State Electricity Distribution Company Limited (MSEDCL) at a fixed tariff of ₹3.04 per unit for a 25-year term.

Financial Highlights:

Project Capacity: 225 MW
Tariff Rate: ₹3.04 per unit

Total Estimated Annual Revenue for SPV:

Gross revenue per annum = INR 1081.13 Million
Total revenue for 25 years = 27028.13 million
Revenue Visibility Period: 25 years under locked-in PPAs

Total Estimated Annual Revenue for RSTL:

Rama Steel's Stake: 10% equity in Onix IPP
RSTL share in gross revenue per annum: INR 108.11 million
Total revenue for 25 years = 2702.81 million

Rama Steel Tubes Limited's participation ensures stable long-term returns from the green and renewable energy sector. With its 10% stake in the SPV, the company will proportionally benefit from recurring income, adding a new dimension of sustainability-linked revenue to its business portfolio.

Strategic Significance:

The project is aligned with the Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PMKUSUM) initiative, aimed at encouraging solar energy generation on barren and government-owned lands. It supports rural development by creating new energy infrastructure, empowering local economies, and reinforcing India's commitment to clean energy.

This move marks Rama Steel Tubes' entry into the fast-growing renewable energy sector, reinforcing its commitment to Environmental, Social and Governance (ESG) goals, and creating long-term value for shareholders.

Mr. Richi Bansal, Whole Time Director & Chief Executive Officer, Rama Steel Tubes Limited, said, commented: "We are proud to be part of this landmark renewable energy initiative. Our strategic investment in the 225 MW PM-KUSUM project not only strengthens our ESG profile but also diversifies our revenue base. This is a future-forward step aligned with India's net-zero vision and rural empowerment."

Source : Equity Bulls

Keywords

RamaSteelTubes StrategicInvestment RenewableEnergy JVPartner