The Update: A Massive Renewable Win
Ravindra Energy Limited (NSE: RELTD) has announced a significant milestone, informing the exchange of receiving multiple Letters of Award (LoA) from the Hubli Electricity Supply Company Limited (HESCOM). This development marks a major expansion of the company’s footprint in the Karnataka renewable energy sector.
Deep Dive: 62 MW of Long-Term Visibility
According to the exchange filing and market reports, the details of this win are substantial:
- Order Scope: The company has received 13 LoAs to establish and operate Solar Power Generators (SPGs) with an aggregate capacity of 62 MW (AC).
- Project Model: These projects will be executed on a Build, Own, and Operate (BOO) basis, meaning Ravindra Energy will retain ownership and generate recurring revenue rather than a one-time EPC fee.
- Financial Impact: The estimated project cost is approximately ₹225 Crores.
- Revenue Certainty: HESCOM will enter into a 25-year Power Purchase Agreement (PPA) with Ravindra Energy at an average tariff of ₹2.95 per unit, ensuring stable cash flows for the next two and a half decades.
Market Context: Why This Matters
For a company like Ravindra Energy, moving from pure EPC (construction) to asset ownership (BOO model) is a strategic shift. It builds a ” annuity-like” income stream. With these projects spread across 13 substations in Karnataka, the company de-risks its generation profile while solidifying its relationship with state utilities like HESCOM.
Conclusion & Investment Implication
This order is a fundamental positive. It locks in revenue for 25 years and enhances the company’s asset book. For investors, the transition to a long-term IPP (Independent Power Producer) model often commands a better valuation multiple than a pure-play contractor.
Tatkal Times 