Pritika Engineering Components, a subsidiary of Pritika Auto Industries, has signed a Memorandum of Understanding (MoU) with Spark Grid for the supply of solar power at competitive rates over a 25-year period. The agreement was announced on August 27, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This long-term solar power arrangement is designed to deliver significant cost efficiencies for the Pritika Group of Industries and improve operational efficiency while increasing the share of renewable energy in the group's power mix. The initiative is aligned with the Group's focus on improving operational efficiency, reducing long-term energy costs and increasing the contribution of renewable energy to its power requirements.
The long-term solar power arrangement is expected to generate estimated savings of approximately ₹110 crore over the 25-year tenure. According to the latest reports, Pritika Engineering Components and Meeta Castings are expected to benefit with savings of approximately ₹70 crore, while Pritika Auto Industries would benefit the balance savings for the same period. This allocation reveals a concentration of cost benefits within the manufacturing subsidiaries, with ₹70 crore of the total ₹110 crore savings attributed to Pritika Engineering Components Limited and Meeta Castings Limited, capturing approximately 64% of the financial benefit. These substantial savings are projected to enhance the overall financial performance of the Pritika Group of Industries through reduced energy costs. The long-term solar power arrangement is expected to provide greater visibility on energy costs while supporting the Group's sustainability objectives.
As part of the proposed arrangement, a Special Purpose Vehicle (SPV) will be established for the solar power project. Pritika Engineering Components Limited is expected to hold 26% equity in the SPV on behalf of the Pritika Group of Industries, subject to regulatory approvals and documentation completion. This ownership structure ensures the group maintains direct control over the solar power project while leveraging Spark Grid's expertise in renewable energy supply. The SPV structure allows the group to participate in renewable energy opportunities while supporting its sustainability agenda. The proposed SPV structure, with Pritika Engineering Components holding 26% equity on behalf of the Group, will enable the company to participate in this long-term renewable energy opportunity while supporting its broader sustainability agenda.
Harpreet Singh Nibber, Chairman and Managing Director, stated that the arrangement marks a significant step in enhancing energy efficiency. He noted that the competitive tariff rate over 25 years is expected to result in the projected ₹110 crore in savings. The long-term solar power arrangement marks an important step in the Group's efforts to enhance energy efficiency and create sustainable cost advantages across the Group. With a competitive rate of tariff over 25 years, the arrangement is expected to strengthen the Group's cost competitiveness over the long term and contribute towards its commitment to adopting cleaner and more sustainable sources of energy. This long-term fixed tariff structure positions the group favorably for sustained energy cost management despite potential market fluctuations.
