Gujarat Fluorochemicals Set To Secure Power From Two Wind Energy Companies

Gujarat Fluorochemicals Set To Secure Power From Two Wind Energy Companies

The Gujarat Fluorochemicals Limited(GFL), a chemical, fluoropolymers, fluorochemicals, refrigerants, and specialty chemicals manufacturer board has approved the procurement of power from two wind energy projects. As per the announcement, the Board has approved the slump sale of the power undertaking of its 57 MW captive power plant to IGREL Mahidad Limited, a wholly owned subsidiary of the GFL for ₹200 crore. The transaction is expected to be effective on or before March 31, 2025, subject to customary closing approvals and conditions.

Additionally, the company plans to invest in two wind energy companies, IGREL Mahidad Limited and Flurry Wind Energy Private Limited. The company stated, “The Board has approved an equity investment of up to ₹40 crore in IGREL Mahidad Limited. This investment will be made in one or more tranches through the subscription of equity shares. The Board has also approved an equity investment of up to ₹200 crore in Flurry Wind Energy Private Limited, a promoter-owned company, for a 26% equity stake. The investment will be made in one or more tranches.”

The company also plans to enter into Power Purchase Agreements (PPAs) with these companies. It elaborated, “The Board has approved entering into a PPA with IGREL Mahidad Limited to procure up to 107 MW of power. The agreed tariff is ₹4 per unit, with the transaction value determined by the units generated and the commercial operation date. This power will be used to meet the energy needs of the company’s plants. A PPA has also been approved with Flurry Wind Energy Private Limited to procure up to 350 MW of power at a tariff of ₹4 per unit. The transaction value will be based on the units generated and the commercial operation date. This power will also be utilized for the company’s operational requirements.”