Oriana Power, through its subsidiary, Truere Surya, has secured a ₹5.2 billion (~$61.94 million) contract from Dalmia Cement (DCBL) to develop a 128 MW ground-mounted solar power project under the open access captive arrangement in Tamil Nadu. Dalmia Cement will acquire 26% shares for ₹448 million (~$5.34 million) in Truere Surya, Oriana said in a filing on the National Stock Exchange.

The share acquisition agreement will help Dalmia Cement source solar power as a captive consumer. The transaction is expected to be completed in four to six months.

The project is part of Dalmia Cement’s efforts to achieve its RE100 goals by 2030 and turn carbon negative by 2040.

Dalmia Cement has a total renewable energy capacity of 185 MW, with 19 MW commissioned in 2023-24. The company has a total solar power capacity of 113 MW.

“These projects lead to savings in power costs and achieve an actual Internal Rate of Return (IRR) or Payback period that aligns with initial projections. Environmentally, they make substantial strides in reducing CO2 emissions per MT of clinker, furthering our commitment to sustainable practices and environmental stewardship,” the company said in its 2023-24 annual report.

Oriana Power recently secured a ₹2.48 billion (~$29.50 million) engineering, procurement, and construction contract for a 52 MW ground-mounted solar power project in Prayagraj, Uttar Pradesh from Bharat Petroleum Corporation.

In 2022, the Meghalaya State Electricity Regulatory Commission allowed Dalmia Cement to offset its renewable purchase obligation (RPO) with the power generated from its waste heat recovery boiler. The Commission exempted Dalmia Cement from meeting its RPO target as long as the power generated and consumed from the boiler exceeds the required RPO target.