Banganga Paper Mills Strengthens Commitment to Renewable Energy
Nashik (Maharashtra) [India], February 18: Banganga Paper Industries Limited (BSE – 512025), formerly known as Inertia Steel Limited, is a prominent manufacturer and supplier of high-quality kraft paper. The company has made a significant advancement towards adopting sustainable energy solutions. Its wholly owned subsidiary, Banganga Paper Mills Limited, has signed a Power Purchase Agreement (PPA) with Livint Green Technologies Ltd. to procure solar power under a captive power generation model.
According to the agreement, Livint Green Technologies Ltd. will develop, own, and operate a 2.5 MW DC ground-mounted solar power plant located in Karjat Village, Ahmednagar District, Maharashtra. This solar facility will provide clean energy to Banganga Paper Mills’ manufacturing unit in Nashik, ensuring a reliable and cost-effective source of renewable energy.
To comply with captive power generation regulations, Banganga Paper Mills Limited will maintain a 26% equity stake in the power-producing entity, while Livint Green Technologies Ltd. will hold the remaining 74%. The project will be developed under a Build-Own-Operate model, which promotes long-term sustainability and operational efficiency.
Additionally, through a Wheeling and Banking Agreement, any surplus electricity generated by the solar power plant will be banked with the state’s power distribution company for future use. This strategic approach will not only enhance energy security but also enable Banganga Paper Mills to take advantage of carbon credits, underscoring its commitment to environmental responsibility and green energy solutions.
The PPA includes a minimum lock-in period of 15 years, with options for extension upon mutual agreement, highlighting the company’s long-term dedication to renewable energy and sustainable business practices.
By transitioning to solar energy, Banganga Paper Mills will benefit from lower per-unit costs compared to current grid tariffs. Currently, the energy cost stands at Rs 10.85 per unit, and this initiative is expected to yield direct savings of approximately Rs 2.30 to Rs 2.50 per unit, as power is generated and distributed via the open grid for internal consumption. Furthermore, the company anticipates a tentative government subsidy of around Rs 1.50 per unit on captive consumption, further enhancing cost efficiency. Substantial energy cost savings will begin to materialize effective April 1, 2025.
Switching to solar energy will significantly reduce Banganga Paper Mills’ reliance on fossil-fuel-based grid power, thereby cutting carbon emissions and aligning with global sustainability objectives. This transition reinforces the company’s commitment to eco-friendly manufacturing while ensuring efficient energy management. By embracing renewable energy, Banganga Paper Mills sets a benchmark for the paper manufacturing sector, showcasing leadership in sustainable business practices.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/banganga-paper-mills-advances-renewable-energy-initiatives-with-new-solar-power-agreement/
