Gabriel India Boosts Stake in TP Solapur Solar Under New Power Arrangement

Gabriel India Limited has announced to the stock exchanges that it has entered into a Group Captive Arrangement under the Electricity Act, 2003 and Electricity Rules, 2005.

This arrangement involves the establishment of a Group Captive Power Plant by TP Solapur Solar Limited, a Special Purpose Vehicle. The power plant is designed for collective use by several industrial consumers, known as Group Captive Consumers. These consumers collectively hold at least 26% of the total equity in the power plant and together consume over 51% of the power generated.

Under this Group Captive Arrangement, Gabriel India Limited has executed a Power Purchase Agreement with TP Solapur Solar Limited. As a result of this agreement, Gabriel India Limited’s investment in TP Solapur Solar Limited has led to an increase in its shareholding. As of August 6, 2024, Gabriel India’s stake in TP Solapur Solar Limited has risen to 5.688% of the total equity share capital of the company.

The power plant established by TP Solapur Solar Limited is part of a broader strategy to enhance energy efficiency and cost-effectiveness for industrial consumers. By participating in this Group Captive Power Plant, Gabriel India Limited aims to secure a reliable and potentially lower-cost source of electricity, which is critical for its manufacturing operations.

The power industry plays a crucial role in supporting the operations of industrial entities, and Gabriel India’s involvement in this arrangement reflects its commitment to improving energy management and sustainability. The investment aligns with the company’s goals of optimising operational costs and ensuring a stable energy supply for its production needs.

Overall, this move underscores Gabriel India Limited’s proactive approach to leveraging regulatory frameworks and strategic partnerships to enhance its operational efficiency and energy security. The company’s increased equity stake in TP Solapur Solar Limited not only reinforces its position within the power industry but also supports its broader business objectives.

On August 7, 2024, the share price of Gabriel India Ltd opened at ₹481.90, touching the day’s high at ₹485.70, as of 11:09 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.