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<p><a href="https://orientcement.com/" target="_blank" rel="noopener noreferrer">Orient Cement</a>, a subsidiary of Indian conglomerate <a href="http://www.ckbirlagroup.com/" target="_blank" rel="noopener noreferrer">CK Birla Group</a>, announced that it would acquire a 26% stake in AMPSolar Systems Private Limited for ₹40.5 million (~$549,244) to set up a 13.5 MW solar project for captive power generation.</p>
<p>Orient says it plans to meet its green energy requirements, optimize energy costs, and comply with regulatory requirements for captive power consumption as per the electricity laws. It has entered into a share purchase, subscription, and shareholders agreements with AMPSolar Technology Private Limited and AMPSolar Systems Private Limited on December 3, 2020.</p>
<p>The transaction will be done through a share capital subscription in a combination of equity shares and compulsory convertible debentures. The acquisition is expected to be completed in six months.</p>
<p>In 2019, global pharmaceutical major Cipla Limited <a href="https://mercomindia.com/cipla-to-acquire-26-stake-in-amp-solar/" target="_blank" rel="noopener noreferrer">acquired</a> a 26% stake in AMPSolar for ₹129 million (~$1.85 million) to access solar under group captive model. AMPSolar also <a href="https://mercomindia.com/airtel-makes-foray-solar-group-captive-model/" target="_blank" rel="noopener noreferrer">brought</a> in Bharti <a href="https://www.airtel.in/about-bharti/about-bharti-airtel" target="_blank" rel="noopener noreferrer">Airtel</a> Limited into its group captive solar project deal. The cost of acquisition was ₹84 million (~$1.2 million) which included subscription of 84,000 (26%) equity shares of ₹10 (~$0.141) each in tranches and subscription of 83,160 (26%) of CCDs of ₹1,000 (~$14.1) each.</p>
<p>Large businesses in India are going green to meet a major part of their energy consumption and comply with the renewable purchase obligations. As most states have made it extremely difficult to procure solar energy through open access by adding a slew of additional charges on consumers, <a href="https://mercomindia.com/group-captive-solar-market-2019/" target="_blank" rel="noopener noreferrer">group captive</a> has become a more attractive model.</p>
<p>Unlike an individual captive or third-party sale power project, group captive is an arrangement through which a developer sets up a power project for the collective use of multiple industrial or commercial consumers who have 26% equity in the project and must consume 51% of the power produced.</p>
<p>Mercom’s report <a href="https://mercomindia.com/product/open-access-solar-market-india-key-states/" target="_blank" rel="noopener noreferrer">Open Access Solar Market in India – Key States</a> throws light on the group captive model in greater detail.</p>
<p><a href="https://amp.energy/" target="_blank" rel="noopener noreferrer">AMP Energy</a> &#8211; the owner or AMPSolar Systems &#8211; develops, owns, and operates renewable energy infrastructure to supply solar and other renewable-based power to commercial, industrial, and utility customers.</p>
<p>Recently, Bengaluru-based biopharmaceutical company Biocon Limited <a href="https://mercomindia.com/biocon-procure-solar-open-access/" target="_blank" rel="noopener noreferrer">said</a> it would acquire a 26% equity stake in Hinduja Renewables Two Private Limited (HRTPL), which is currently undertaking a 36 MW open access solar project in Raichur, Karnataka. With this transaction, Biocon will be procuring solar through open access under the group captive model.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/nithin-thomas-prasad/" class="vcard author" rel="author"><span class="fn">Nithin Thomas</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Nithin-2-1.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Nithin Thomas,</strong> Staff reporter at Mercom India<br />
<a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" target="_blank" rel="noopener">More articles from Nithin Thomas.</a></p>
</div>
<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Nithin-2-1.jpg" width="102" height="102" /><a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" rel="noopener">Nithin Thomas</a> is a staff reporter at Mercom India. Previously with Reuters News, he has covered oil, metals and agricultural commodity markets across global markets. He has also covered refinery and pipeline explosions, oil and gas leaks, Atlantic region hurricane developments, and other natural disasters. Nithin holds a Masters Degree in Applied Economics from Christ University, Bangalore and a Bachelor&#8217;s Degree in Commerce from Loyola College, Chennai.<a href="https://www.mercomindia.com/author/nithin-thomas-prasad/" rel="noopener">More articles from Nithin Thomas Prasad</a></div>
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Orient Cement to Buy Solar Under Group Captive Model from AMPSolar’s Open Access Project

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