Simplex Castings Limited, one of India’s leading precision metallurgy and casting solutions companies, has entered into a long-term renewable energy partnership aimed at reducing energy costs and strengthening its sustainability commitments. The company has signed a 25-year Power Purchase Agreement (PPA) with Natraj Energy, a renewable energy firm based in Raipur, for the supply of clean electricity through a captive solar power project under the Long-Term Open Access mechanism in Chhattisgarh.
Under the agreement, Natraj Energy will develop, own, operate, and maintain a 5.5 MWp grid-connected solar power plant that will supply renewable energy to Simplex Castings’ manufacturing facilities located at Bhilai and Tedesara. The arrangement enables the company to access solar-generated electricity through an open-access captive consumption model, helping reduce dependence on conventional grid power.
The initiative is expected to generate significant financial benefits for the company. Simplex Castings estimates annual savings of approximately ₹2.16 crore through lower energy procurement costs. Prior to the agreement, electricity was sourced from the conventional grid at around ₹9 per unit. Under the solar arrangement, the company expects to lower effective power costs to approximately ₹5–6 per unit, creating a more competitive cost structure over the long term.
A notable feature of the project is its cash-neutral structure. The arrangement allows Simplex Castings to participate in the benefits of renewable energy generation without substantial upfront capital expenditure. Natraj Energy will manage all aspects of project execution, including regulatory approvals, grid connectivity, long-term open-access arrangements, and ongoing operations and maintenance throughout the contract period.
Commenting on the development, Ketan Shah, Chairman and Executive Director of Simplex Castings, said the agreement represents an important milestone in the company’s sustainability roadmap. He noted that securing renewable energy at predictable tariffs over a 25-year horizon will not only strengthen environmental performance but also improve profitability through substantial energy cost savings.
The move aligns with broader industry trends as manufacturers increasingly adopt renewable energy solutions to enhance competitiveness while reducing carbon emissions. By integrating solar power into its operations, Simplex Castings aims to support responsible manufacturing practices while building a more resilient and efficient energy framework.
Simplex Castings Limited is recognised for its expertise in precision metallurgy and maintains a global business presence. Its infrastructure includes a cast iron foundry, heavy engineering and fabrication facilities, and advanced machining capabilities supported by modern equipment and CNC systems. The company also operates an engineering, procurement, and construction (EPC) division for turnkey projects, along with a dedicated design unit equipped with contemporary digital tools.
