Rama Steel Tubes Invests in Onix Renewable’s 225 MW KUSUM Solar Project
The project is part of Onix Renewable’s SPV, Onix IPP
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New Delhi-headquartered steel tubes and pipes manufacturing company Rama Steel Tubes (RSTL) has forayed into the renewable energy sector by participating as a joint venture partner in a 225 MW solar project under the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM) program.
The project will be implemented by Onix Renewable’s special purpose vehicle (SPV), Onix IPP. The SPV signed power purchase agreements (PPAs) with the Maharashtra State Electricity Distribution Company at a tariff of ₹3.04 (0.035)/kWh for a 25-year term.
Onix IPP’s annual gross revenue from this project is expected to be ₹1.08 billion (~$12.6 million). The total revenue for the full term is projected to be approximately ₹27.03 billion (~$315.12 million).
The 225 MW project is part of 1,959 MW solar projects being developed by Onix Renewable across 252 locations in Maharashtra. NOPL Pace Green Energy, which won 990 MW for ₹40.59 billion (~$473.9 million), and NOPL Solar Projects, which, won 969 MW for ₹39.74 billion (~$463.97 million), will set up the projects.
Onix had issued the tender in January 2025.
Rama Steel Tubes said the stake acquisition in the project will benefit it through recurring income and adding a new dimension of sustainability-linked revenue to its business portfolio. It also plans to utilize this shareholding to meet its environmental, social, and governance goals.
As of October last year, over 500,000 standalone solar pumps were installed under the PM-KUSUM program. Various states have raised a demand for over 1.3 million solar pumps, and letters of award have been issued for about 970,000 pumps. In all, 540,499 pumps have been installed, meeting 42% of the target, Minister of State for New and Renewable Energy Shripad Yesso Naik told the Lok Sabha.
In January this year, Onix Renewable was among the winners of NHPC’s auction to set up 1,200 MW inter-state transmission system-connected solar power projects with 600 MW/1,200 MWh energy storage systems. The company was awarded 100 MW capacity for a tariff of ₹3.09 (~$0.0358)/kWh.
