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PNN
Nashik (Maharashtra) [India], February 18: Banganga Paper Industries Limited (BSE - 512025), (Formerly known as Inertia steel Limited), one of the leading manufacturer and supplier of high-quality kraft paper, has taken a significant step toward sustainable energy adoption. Its wholly owned subsidiary, Banganga Paper Mills Limited, has entered into a Power Purchase Agreement (PPA) with Livint Green Technologies Ltd. for the procurement of solar power under a captive power generation model. As per the agreement, Livint Green Technologies Ltd., will develop, own, and operate a 2.5 MW DC ground-mounted solar power plant at Karjat Village, Ahmednagar District, Maharashtra. This solar facility will supply clean energy to Banganga Paper Mills' manufacturing unit in Nashik, ensuring a reliable and cost-effective renewable energy source. To comply with captive power generation regulations, Banganga Paper Mills Limited will hold a 26% equity stake in the power-producing entity, while the remaining 74% will be retained by Livint Green Technologies Ltd. The project will be developed under a Build-Own-Operate model, ensuring long-term sustainability and operational efficiency. Additionally, under a Wheeling and Banking Agreement, any surplus electricity generated from the solar power plant will be banked with the state's power distribution company for later use. This strategic move will not only provide energy security but also enable Banganga Paper Mills to leverage carbon credits, reinforcing its environmental responsibility and commitment to green energy solutions. The PPA has a minimum lock-in period of 15 years, with provisions for extension upon mutual agreement, demonstrating a long-term commitment to renewable energy and sustainable business practices. By shifting to solar energy, the company will benefit from lower per-unit costs compared to current grid tariffs. With the present energy cost at Rs 10.85 per unit, this initiative will lead to direct savings ofapproximately Rs 2.30 to Rs 2.50 per unit, as power is generated and distributed via the open grid for internal consumption. Additionally, the company is expected to receive a tentative government subsidy of around Rs1.50 per unit on captive consumption, further enhancing cost efficiency. Effective April 1, 2025, the company will begin realizing substantial energy cost savings through this initiative. By transitioning to solar energy, Banganga Paper Mills will reduce its reliance on fossil-fuel-based grid power, significantly cutting carbon emissions and aligning with global sustainability goals. This move reinforces its commitment to eco-friendly manufacturing while ensuring cost-efficient energy management. By integrating renewable energy, the company sets a benchmark for the paper manufacturing sector, demonstrating leadership in sustainable business practices (ADVERTORIAL DISCLAIMER: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same)
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