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.
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