Truck and bus maker Ashok Leyland has picked a 26 percent stake in a solar power generating company which is owned by the common promoter, Hinduja Group.
Chennai-based Ashok Leyland bought stake in Prathama Solarconnect Energy (PSEPL) for Rs 18.66 crore. As per disclosures made by Ashok Leyland, the Hinduja Group’s flagship company, PSEPL recorded zero revenues as of March 31, 2020 but a loss of Rs 76.97 lakh during the same year. PSEPL was incorporated in January 2019.
The commercial vehicle maker clarified that the reasons behind the acquisition was to get ‘solar power at subsidised rate under group captive scheme’. Ashok Leyland had started the execution of a 70 MW solar park which was expected to be completed in mid of FY21.
“This project will be set up with the company as captive user and "Prathama Solarconnect Energy Private Limited" as the power producer”, Ashok Leyland had stated in its 2019-20 annual report.
The truck maker had taken up a 5 MW roof top solar project on priority with Hinduja Renewable Energy at Pantnagar, Alwar and Bhandara Plants and completed in April 2019. There are as many as 10 companies engaged in renewable and solar energy generation business that are part of the Hinduja Group and collectively referred to as Hinduja Renew Group.
The arrangements with Hinduja Renewable Energy and PSEPL are expected to reduce the overall cost of production and significant reduction in CO2 emission. ‘The company is committed to 75 percent of renewable energy’ Ashok Leyland said this in FY20 annual report.
Usage of wind energy was around 28 percent of the total power consumption which was 65.49 million units. In FY20 11.74 million units of solar energy was generated from 10.14 MW roof top solar. The company’s Green Energy initiative realised significant operating cost savings to the tune of Rs 10.29 crore, while also making a reduction in emissions by 65,928 tCO2e, Ashok Leyland further stated in the report.