Gujarat Alkalies and Chemicals Limited (GACL) has entered into a agreement with Aditya Birla Renewables Limited (ABRen) and its Special Purpose Vehicle (SPV), Aditya Birla Renewables SPV 4 Limited, to set up a 62.7 MW Renewable Hybrid Power Project in Gujarat. The power generated will be exclusively for GACL’s captive consumption, marking a major step toward the company’s commitment to green energy.
The agreement, finalized on December 28, 2024, includes both a Shareholders Agreement and a Power Consumption Agreement. GACL is set to acquire a 26% stake in the SPV, while ABRen, along with its six nominees, will hold the remaining 74%. The Power Consumption Agreement will ensure GACL has 100% access to the power generated by the project, with a 25-year validity unless terminated earlier. The venture aims to enhance GACL’s sustainable energy use, ensuring a long-term supply of renewable power.
Under the terms of the agreement, GACL will be able to appoint a nominee director to the board of the unlisted SPV company. The project is expected to contribute significantly to the company’s renewable energy goals, ensuring eco-friendly operations for the long term.
This collaboration between GACL and ABRen is poised to drive green technology forward in Gujarat, with both parties maintaining their respective equity shareholding proportions in the SPV. The project is part of a broader push toward renewable energy in India, aligning with national sustainability goals.
