Havells India has approved acquiring a stake of 26% in Kundan Solar (Pali), a Special Purpose Vehicle (SPV), established for the business of developing, installing, operating, managing and maintaining solar power plant.

The purpose of this transaction is to strategically reduce dependence on fossil fuel and move towards green energy. Kundan Solar will set up a 15 MWac solar power plant and Havells plan to enter into a long-term Power Purchase Agreement (PPA) up to 25 years. Under the Electricity Laws, Havells is required to hold a minimum of 26% shareholding to qualify as a captive consumer.

The arrangement will result in savings in power cost at plant locations in Rajasthan with payback within ~12-18 months from date of commissioning of the project.