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Lloyds Metals Signs 60.7 MW Solar PPAs with Hinduja Renewables, Eyes Rs1,000 Cr Annual Savings

Lloyds Metals and Energy has entered into two power purchase agreements (PPAs) with Hinduja Renewables for captive solar power supply—10.7 MW and 50 MW respectively. In tandem, a share subscription and shareholders’ agreement was signed with Hinduja Renewables Energy and HR Godavari, a special-purpose vehicle (SPV) formed for this initiative. Lloyds will acquire at least 26% of the SPV’s equity to comply with India's captive power regulations.

Under the agreement, Lloyds secures substantial governance rights, including pre-emptive rights and affirmative voting powers on major decisions like capital changes, mergers, or abandonment of the captive project. This ensures Lloyds maintains strategic control over HR Godavari’s solar operations.

The company's board has approved sourcing a total of 100 MW of solar energy via the group captive model, supported by a planned Rs450 million investment. According to its FY25 annual report, Lloyds anticipates up to Rs1,000 crore in annual operational savings from renewable power, with a rapid payback period of under five months and an exceptional internal rate of return (IRR) of 251%. This marks a significant step toward decarbonizing its mining and pellet operations while sharply cutting energy costs.