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 leading manufacturer and supplier of high-quality kraft paper. The company has made a significant move towards sustainable energy by entering into a Power Purchase Agreement (PPA) with Livint Green Technologies Ltd. This agreement will facilitate the procurement of solar power under a captive power generation model through its wholly-owned subsidiary, Banganga Paper Mills Limited.
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 renewable energy source.
To comply with captive power generation regulations, Banganga Paper Mills Limited will hold a 26% equity stake in the power-producing entity, while Livint Green Technologies Ltd. will retain the remaining 74%. The project will be developed under a Build-Own-Operate model, which aims to ensure long-term sustainability and operational efficiency.
Additionally, under a Wheeling and Banking Agreement, any surplus electricity generated from the solar power plant will be banked with the state’s power distribution company for future use. This strategic initiative not only enhances energy security but also allows Banganga Paper Mills to benefit from carbon credits, reinforcing its commitment to environmental responsibility and green energy solutions.
The PPA has a minimum lock-in period of 15 years, with options for extension upon mutual agreement, showcasing a long-term commitment to renewable energy and sustainable business practices.
By transitioning to solar energy, the company expects to reduce its energy costs significantly. Currently, the energy cost stands at Rs 10.85 per unit, but this initiative is projected to lead to direct savings of approximately Rs 2.30 to Rs 2.50 per unit, as the power will be generated and distributed through the open grid for internal consumption. Furthermore, the company anticipates receiving a tentative government subsidy of around Rs 1.50 per unit on captive consumption, thereby enhancing cost efficiency. Effective April 1, 2025, Banganga Paper Mills will start enjoying substantial energy cost savings from this initiative.
By making this shift to solar energy, Banganga Paper Mills aims to decrease its reliance on fossil fuel-based grid power, significantly reduce carbon emissions, and align with global sustainability objectives. This initiative not only reinforces the company’s commitment to eco-friendly manufacturing but also establishes a benchmark for the paper manufacturing sector, demonstrating leadership in sustainable business practices.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/banganga-paper-mills-enhances-sustainability-with-solar-power-initiative/
