IMFA acquires 26% stake in renewable energy firm EG Urja Strot for ₹110 crore

Indian Metals & Ferro Alloys Ltd (IMFA) on Tuesday said it has acquired a 26% equity stake in renewable energy company EG Urja Strot Private Limited for about ₹110.18 crore as part of its strategy to strengthen energy security and increase the share of green power in its operations.

The company has also signed a 29-year Power Purchase Agreement (PPA) with EG Urja Strot under the captive consumer framework, securing 65 MW of hybrid renewable power for its ferro chrome business.

The hybrid renewable energy project will have an installed capacity of 81.4 MW of solar power, 102.6 MW of wind power and a 25 MWh battery energy storage system (BESS). IMFA will draw 65 MW power as a captive consumer from the project, which is expected to be completed by June 2027.

The latest agreement comes in addition to IMFA’s previously announced 70 MWp hybrid renewable energy sourcing arrangement, expected to begin from the second quarter of FY27. With the new deal, the company’s total contracted renewable energy portfolio has risen to 135 MW.

The company said renewable energy is expected to contribute nearly 40% of its overall energy mix in the next fiscal, helping ensure reliable and cost-effective power supply for operations.

Commenting on the development, Binoy Agarwalla, Vice President and Head of Power Business Unit at IMFA, said, “This acquisition is aligned with IMFA’s long-term strategy of strengthening energy security whilst increasing the share of renewable power in our overall energy mix.”

“The arrangement will support our operations with reliable and competitively priced green power over the long term,” he added.

Agarwalla further said the integration of solar, wind and battery storage capacity is expected to improve operational efficiency and provide greater stability in power procurement.

“Building on the strong foundation of our integrated business model, we will continue to pursue opportunities that enhance competitiveness and create sustainable value for stakeholders,” he said.

According to the company, the renewable energy arrangements are expected to offset around 1.6 lakh tonnes of carbon emissions annually and nearly 45 lakh tonnes over the duration of the agreement.

Founded in 1961 and headquartered in Bhubaneswar, IMFA is India’s largest fully integrated producer of value-added ferro chrome. The company currently has an installed furnace capacity of 289 MVA with an annual production capacity of 4,34,000 tonnes per annum. It also operates captive chrome ore mines and power generation facilities, including coal-based and solar assets.

The company is also expanding its ferro chrome operations through a greenfield project at Kalinganagar, which will increase its total furnace capacity to 355 MVA or 5,34,000 tonnes per annum.