Borosil Renewable, a leading Indian manufacturer of solar glass, has recently announced its acquisition of a 49 percent stake in two entities: Clean Max Prithvi Pvt Ltd (CMPPL) and Clean Max Enviro Energy Solutions Pvt Ltd. This strategic move was disclosed in a recent filing with the Bombay Stock Exchange (BSE). As per Indian regulations governing open access to renewable energy, entities that consume green power must hold a proportional stake in the companies supplying this energy.
To comply with these regulations, energy developers often establish dedicated subsidiaries for each project in the commercial and industrial (C&I) sector. CMPPL, which was established on March 14, 2023, is still in the process of initiating its renewable energy operations. According to the agreement between Borosil Renewable and CMPPL, the latter will supply green energy derived from a hybrid solar and wind project located in Gujarat.
This energy will be used exclusively for Borosil Renewable’s own consumption, adhering to the rules governing captive power consumption. The acquisition involves Borosil Renewable taking a 49 percent share in CMPPL, which equates to 4,900 equity shares with a nominal value of Rs. 10 each. The cost of this stake amounts to Rs. 49,000. This acquisition is expected to be finalized within the next two months.
Additionally, both Borosil Renewable and Clean Max Enviro Energy Solutions Pvt Ltd, the current major shareholder of CMPPL, will need to make further financial contributions to CMPPL to support the development of the hybrid power plant. Borosil Renewable has planned to invest approximately Rs. 17.83 crore in CMPPL, potentially in multiple phases, to facilitate the construction and maintenance of the 16.50 MW hybrid power plant in Gujarat.
This investment aligns with Borosil Renewable’s broader strategy to bolster its renewable energy footprint while ensuring compliance with Indian regulations for captive power usage. By securing a stake in CMPPL, Borosil Renewable not only enhances its commitment to green energy but also secures a reliable source of renewable power for its operations.
The hybrid solar and wind power project is expected to play a crucial role in meeting Borosil Renewable’s energy needs while supporting the company’s sustainability goals. The partnership between Borosil Renewable and CMPPL signifies a notable step forward in the Indian renewable energy sector, underscoring the growing importance of strategic investments and regulatory compliance in the transition to sustainable energy solutions.
Borosil Renewable is a prominent Indian solar glass manufacturer dedicated to advancing sustainable energy solutions. Clean Max specializes in renewable energy projects, including hybrid solar and wind power. The two companies have collaborated, with Borosil Renewable acquiring a 49% stake in Clean Max Prithvi Pvt Ltd to enhance its renewable energy usage and compliance with Indian regulations.
