The project, developed by Onix IPP, a Special Purpose Vehicle (SPV), is spread across multiple locations in Maharashtra and has signed power purchase agreements (PPAs) with Maharashtra State Electricity Distribution Company (MSEDCL). These PPAs guarantee a fixed tariff of Rs 3.10 per unit for 25 years, ensuring stable and predictable revenue streams.
Financially, the project is estimated to generate gross annual revenue of Rs 108.11 crore, with Rama Steel's share amounting to approximately Rs 10.81 crore per year. Over the 25-year PPA term, the company expects total revenues of around Rs 270.28 crore from this investment.
This initiative aligns with the PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan) scheme, which aims to promote solar energy generation on barren and government-owned lands, fostering rural development, energy infrastructure, and local economic empowerment.
Richi Bansal, whole time director & chief executive officer, Rama Steel Tubes, said, "Our investment in the 225 MW PM-KUSUM project not only strengthens our ESG profile but also diversifies our revenue base."
Rama Steel Tubes has been a pioneer in India's steel tube manufacturing sector, offering a wide range of products including pre-galvanized, structural, and hollow sections. On a consolidated basis, the company's net profit declined 4.07% to Rs 6.84 crore while net sales rose 9.29% to Rs 293.20 crore in Q4 March 2025 over Q4 March 2024.