CESC’s renewable energy arm Purvah Green Power Private Limited (PGPPL) has signed a power supply agreement with Prism Johnson Limited to develop a 49.5 MW wind power project in Madhya Pradesh.
The project will operate under the group captive model. KUS Renewable Private Limited (KRPL), a wholly owned subsidiary of Purvah Green Power, will develop the wind project.
According to the agreement, the project will supply renewable electricity to Prism Johnson’s manufacturing operations in Madhya Pradesh for 25 years. The commercial operation date is scheduled for January 25, 2028.
First C&I Power Supply Agreement for Purvah
The agreement marks Purvah Green Power’s first commercial and industrial (C&I) power supply agreement.
Purvah Green Power operates as the renewable energy platform of CESC within the RP-Sanjiv Goenka Group. Until now, its renewable energy portfolio has largely focused on utility-scale projects.
Therefore, the Prism Johnson agreement marks an expansion into direct renewable power supply for industrial consumers.
49.5 MW Wind Project to Come Up in Ratlam
The 49.5 MW wind power plant will be constructed by KUS Renewable at Tehsil Alot in Ratlam district, Madhya Pradesh.
The renewable electricity generated by the project will be supplied to Prism Johnson’s cement manufacturing facility in Satna district.
As a result, the project will connect renewable generation in Ratlam with industrial electricity consumption at Prism Johnson’s cement operations in the state.
Prism Johnson to Invest Up to Rs 40 Crore
As part of the transaction, Prism Johnson will invest up to Rs 40 crore in KUS Renewable.
The investment will give Prism Johnson a 26.5% stake in the project company through equity and redeemable preference shares. Purvah Green Power will retain the remaining 73.5% stake.
Moreover, the investment will be made in tranches in line with the project’s requirements. The companies also signed a Share Subscription and Shareholders’ Agreement alongside the power purchase agreement.
Project Will Follow Group Captive Model
The project will use the group captive renewable energy model.
Under this structure, the industrial consumer takes an ownership stake in the project while also consuming the electricity generated by it. In this case, Prism Johnson will participate as a captive consumer through its stake in KUS Renewable.
Consequently, the arrangement creates a direct link between renewable power generation and Prism Johnson’s industrial electricity requirements.
Renewable Power for Prism Johnson’s Cement Operations
Prism Johnson operates a cement manufacturing facility in Satna, Madhya Pradesh. The company plans to use electricity from the wind project for its manufacturing operations.
The arrangement will allow Prism Johnson to increase its use of renewable electricity. According to the company, the project is also aligned with its efforts to improve energy efficiency, resource optimisation and environmental, social and governance objectives.
Commercial Operations Planned for January 2028
The wind project is scheduled to achieve commercial operation on January 25, 2028.
Until then, KUS Renewable will undertake the development of the project, including construction of the wind generation facility.
Meanwhile, the long-term agreement provides a planned renewable power supply arrangement between the two companies. The 25-year duration will cover a substantial part of the project’s expected operating period.
Purvah Expands Its Renewable Energy Business
The agreement also reflects Purvah Green Power’s broader renewable energy expansion.
CESC has previously outlined plans to build a large renewable energy portfolio through Purvah. Its projects include wind and solar developments across several states.
In addition, the company has been developing renewable capacity through both utility-scale contracts and other power supply arrangements. The latest agreement therefore adds a new commercial and industrial segment to its renewable business.
Focus on Industrial Renewable Power
Heavy industries require large and consistent amounts of electricity. Cement manufacturing is one such energy-intensive activity.
Therefore, long-term renewable power agreements can provide industrial companies with a dedicated source of clean electricity while allowing renewable developers to secure an identified consumer.
For Purvah Green Power, the Prism Johnson agreement creates an entry point into this market. At the same time, Prism Johnson gains access to renewable power through its participation in the captive project.
A New Partnership in Madhya Pradesh
The 49.5 MW wind project brings together CESC’s renewable energy platform and a major cement producer.
Purvah Green Power will develop the project through its subsidiary KUS Renewable, while Prism Johnson will participate as a captive consumer and investor.
With commercial operations targeted for January 2028, the project marks another step in the expansion of renewable power supply for industrial consumers in Madhya Pradesh.