Investment of Rs 5.63 crore to back 15 MWac Rajasthan solar plant, cut fossil-fuel use and power costs

Havells India has approved the acquisition of a 26 per cent stake in Kundan Solar (Pali), a special purpose vehicle set up to develop and operate a 15-megawatt AC solar power plant for captive use.

Kundan Solar (Pali) is a subsidiary of Kundan Green Energy, part of the Kundan Group, and is focused on solar power development. Havells said the transaction is not a related-party deal, as its promoter group has no interest in the Kundan entity.

Under the arrangement, Kundan Solar (Pali) will build, own and operate the solar plant, while Havells will sign a long-term power purchase agreement of up to twenty-five years for captive consumption of renewable power at its units in Rajasthan.

The electricals company will invest Rs 5.63 crore in the SPV, to be paid in cash in multiple tranches linked to project milestones. The transaction is expected to be completed by 30 June 2026.

Havells said the captive solar project is intended to reduce its dependence on fossil fuels and lower electricity costs at its Rajasthan facilities. The company expects a payback period of about twelve to eighteen months after the plant is commissioned.

The SPV was incorporated on 3 April 2025 and the 15 MW ac project is planned for commissioning in the second quarter of the 2026–27 financial year, according to company disclosures.