Nandan Denim Secures 25‑Year Renewable Power Deal via 6.1% SPV Stake

**TL;DR** Nandan Denim will acquire a 6.1% equity stake in a renewable‑energy special purpose vehicle for ₹4 crore, locking in 4.3 MW of wind and solar power for its Bareja plant for the next 25 years.

Context Many Indian manufacturers are turning to group captive renewable projects to curb electricity expenses and meet sustainability goals. In this model, several firms jointly own a power‑generating SPV and consume the output proportionate to their equity share. Gujarat’s strong wind and solar resources have made it a hub for such captive arrangements, especially among energy‑intensive sectors like textiles.

Key Facts The company will pay ₹4 crore for the 6.1% share in the SPV promoted by Opera Vayu (Narmada) Private Limited and Shivman Wind Energy Private Limited. Through the SPV, Nandan Denim will receive about 4.3 megawatts of combined wind and solar electricity. The shareholder agreement locks in competitively priced green power for the Bareja facility for a period of 25 years.

What It Means The stake gives Nandan Denim a direct claim on the SPV’s output, reducing reliance on purchased grid electricity and insulating the plant from future tariff hikes. By fixing energy costs for two and a half decades, the deal improves predictability of operating expenses and supports the firm’s carbon‑reduction targets. Industry analysts note that similar captive structures can lower electricity bills by 10‑20% compared with market rates, though actual savings depend on project performance and regulatory approvals.

Forward-looking The transaction is slated for completion by June 30, 2026; stakeholders will monitor the SPV’s commissioning timeline, the actual energy yield, and whether Nandan Denim expands its renewable portfolio to other units.