Tamilnadu Petroproducts To Acquire 26% Stake In Solar SPV For Captive Power Supply

Tamilnadu Petroproducts Limited (TPL) has announced a strategic move into the renewable energy sector by planning to invest in a solar power project through Navia Three Power Private Limited (NTPPL).

TPL intends to acquire up to a 26% stake in the equity share capital of Navia Three Power Private Limited. This investment is aimed at securing solar power for TPL’s manufacturing operations and fulfilling the conditions required to qualify as a captive power consumer under the Electricity Act, 2003. Becoming a captive user allows the company to access regulatory benefits while ensuring a reliable and cost-effective power supply.

Under the proposed arrangement, TPL will procure around 19.8 megawatt-peak (MWp) of solar capacity on a DC basis, which translates to about 13.2 MW on an AC basis. To support this capacity, the company has committed to invest up to ₹7.32 crore. The investment will be made in multiple tranches as cash consideration for subscribing to the equity shares of NTPPL.

Navia Three Power Private Limited was incorporated on August 12, 2024, as a special purpose vehicle. The company is headquartered in Gurgaon, Haryana, and has been set up with the objective of developing wind-solar hybrid power generation projects in Tamil Nadu. Since it is still at an early stage of operations, NTPPL has not reported any turnover in its most recent financial statements.

TPL has clearly stated that the proposed investment does not fall under related party transactions. According to the company, none of its promoters, promoter group entities, or group companies has any interest in Navia Three Power Private Limited. This clarification ensures transparency and compliance with regulatory norms.

The key purpose of this investment is to secure a stable supply of renewable energy and reduce overall power costs for TPL. By sourcing clean energy through a captive arrangement, the company also strengthens its commitment to sustainability and long-term operational efficiency.

The indicative timeline for completing the acquisition is on or before September 2026. The disclosure was signed by Sangeetha Sekar, Company Secretary of Tamilnadu Petroproducts Limited, in line with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This move highlights TPL’s growing focus on renewable energy as part of its broader business and sustainability strategy.