Pritika Engineering Components Limited, a subsidiary of Pritika Auto Industries Limited, has signed a Memorandum of Understanding (MoU) with Spark Grid Private Limited for the supply of solar power at a competitive rate over a period of 25 years, according to a regulatory filing by the company.
The arrangement, entered into on behalf of the Pritika Group of Industries, is expected to deliver estimated savings of approximately Rs 110 crore over the 25-year tenure, the filing said. Of this, Pritika Engineering Components Limited and Meeta Castings Limited are expected to together benefit from savings of around Rs 70 crore, while Pritika Auto Industries Limited would account for the remaining savings over the same period.
As part of the proposed arrangement, a Special Purpose Vehicle (SPV) will be set up for the solar power project, with Pritika Engineering Components Limited expected to hold 26 per cent equity in the SPV on behalf of the Group, subject to the completion of applicable approvals and documentation, the company said.
Harpreet Singh Nibber, Chairman and Managing Director of Pritika Auto Industries Limited, said the long-term solar power arrangement marked an important step in the company’s efforts to enhance energy efficiency and build sustainable cost advantages across the Group. With a competitive tariff over 25 years, he said the arrangement was expected to result in savings of around Rs 110 crore for the Group, including approximately Rs 70 crore for Pritika Engineering Components Limited.
Nibber said the proposed SPV structure would enable the Group to participate in the long-term renewable energy opportunity while supporting its broader sustainability agenda, adding that the arrangement was expected to strengthen the Group’s cost competitiveness over the long term and support its commitment to adopting cleaner sources of energy.
The initiative is aligned with the Group’s focus on improving operational efficiency, reducing long-term energy costs and increasing the share of renewable energy in its power requirements, the company said, adding that the arrangement is expected to provide greater visibility on energy costs going forward.
