Tamil Nadu Petroproducts Ltd. (TPL), a company specializing in the manufacture of Linear Alkyl Benzene, caustic soda, and Propylene Oxide, has announced plans to acquire a 3% stake in Dalavaipuram Renewables Pvt Ltd (DRPL), a renewable energy firm. Under the arrangement, TPL will procure up to 59.93 million kWh of solar and wind power annually from DRPL for a cash consideration of ₹13.88 crore.
DRPL was established as a special purpose vehicle to set up a wind and solar captive power plant in Tuticorin and is currently operating a plant for generating and selling power. In line with the Electricity Act, 2003, TPL has agreed to invest ₹13.88 crore, equivalent to 2.73% of DRPL’s paid-up equity capital, to meet its captive power generation requirements.
The acquisition is expected to be completed by September 2023, as stated by TPL in a regulatory filing. The company’s shares, trading on the NSE, closed at ₹80.20, reflecting a 2.62% increase compared to the previous day’s closing price.
By diversifying into renewable energy, TPL is making a strategic move to expand its operations and contribute to a cleaner and more sustainable future. This investment in DRPL enables TPL to secure a substantial amount of solar and wind power, which will not only meet its captive power needs but also reduce its reliance on conventional sources of energy.
Renewable energy has become an increasingly popular choice for companies looking to reduce their carbon footprint and enhance their environmental credentials. By investing in renewables, TPL is positioning itself as an environmentally conscious organization that recognizes the importance of sustainable energy sources.
This move also aligns with the Indian government’s focus on promoting renewable energy and achieving its renewable energy targets. By supporting the growth of the renewable sector, TPL is contributing to the country’s efforts to reduce greenhouse gas emissions and combat climate change.
The acquisition of a stake in DRPL allows TPL to not only benefit from the generation of clean energy but also actively participate in the renewable energy sector. This strategic partnership will likely lead to long-term collaboration between the two companies, driving further growth and innovation in the renewable energy space.
Overall, TPL’s decision to invest in DRPL reflects its commitment to sustainability and green practices. By embracing renewable energy, TPL is setting a positive example for other companies and demonstrating its dedication to corporate social responsibility. As the world transitions towards a low-carbon economy, TPL’s investment in renewables positions it at the forefront of this global shift and ensures a brighter and cleaner future.
