5 days ago
Rama Steel Tubes enters renewable energy sector with 10% stake in 225 MW solar power project under PM-KUSUM
Rama Steel Tubes Limited (RSTL), a prominent player in the steel tubes manufacturing space, has taken a strategic step into renewable energy by acquiring a 10% equity stake in a 225 MW solar power project under the PM-KUSUM scheme. The project is executed via a Special Purpose Vehicle (SPV), Onix IPP, and is spread across various locations in Maharashtra.
As per the official release, Power Purchase Agreements (PPAs) have been signed with the Maharashtra State Electricity Distribution Company Limited (MSEDCL) at a fixed tariff of ₹3.10/unit for 25 years. This ensures long-term revenue visibility and aligns with India's clean energy goals. RSTL is expected to generate annual revenue of ₹10.81 crore from this investment, translating to ₹270.28 crore over the PPA tenure.
This investment marks Rama Steel's diversification beyond traditional manufacturing and into ESG-compliant, sustainability-linked revenue streams. The company's management stated that this initiative is in sync with India's net-zero ambitions and rural development focus.
Updated stock details
Shares of Rama Steel Tubes were last seen trading at ₹25.15, up 1.41% on Thursday. The company has a market capitalization of approximately ₹910 crore.
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