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Rama Steel Tubes Enters Renewable Energy Sector with 225 MW Solar JV under PM-KUSUM

Rama Steel Tubes Ltd. (RSTL), a prominent steel tubes and pipes manufacturer, has entered the renewable energy sector through a joint venture in a 225 MW solar power project under the PM-KUSUM scheme. The project, executed via Onix IPP—a Special Purpose Vehicle (SPV)—is distributed across various locations in Maharashtra. Power Purchase Agreements (PPAs) have been signed with the Maharashtra State Electricity Distribution Company Ltd. (MSEDCL) at a fixed tariff of Rs3.10 per unit for 25 years.

The SPV is projected to generate gross annual revenues of Rs1,081.13 million, totaling an estimated Rs27,028.13 million over its lifetime. With a 10% equity stake in the venture, Rama Steel Tubes expects to earn about Rs108.11 million annually, or Rs2,702.81 million over 25 years. The project aligns with India’s clean energy and net-zero goals, while also contributing to rural development by utilizing barren and government lands for solar infrastructure.

Richi Bansal, CEO and Whole Time Director at RSTL, highlighted that this strategic investment enhances the company’s ESG credentials and diversifies its revenue sources. The move reflects a broader trend of traditional manufacturing companies expanding into the green energy domain to support India’s sustainability agenda and energy security.