- Investment targets lower cement production costs
- Renewable power to support Satna cement plant
Prism Johnson Limited has approved an investment of up to INR 40 crore in KUS Renewable Private Limited, a special purpose vehicle promoted by Purvah Green Power Private Limited, a subsidiary of Calcutta Electric Supply Corporation Limited, to develop a 49.5 megawatt captive wind power project in Madhya Pradesh. The project is intended to supply dedicated renewable power to Prism Johnson’s cement plant at Satna.
Renewable power to reduce production costs
The proposed investment will be made through equity and/or redeemable preference shares of KUS Renewable Private Limited. Prism Johnson will acquire equity shares carrying at least 26.5% of the equity share capital of KUS, in addition to preference shares.
The wind project will be located at Tehsil Alot in Ratlam district, Madhya Pradesh. Power supply to the Satna cement plant will be governed by a proposed Power Purchase Agreement between Prism Johnson and KUS Renewable Private Limited.
The company said the investment is aimed at purchasing cheaper renewable power and reducing the cost of cement production. The project is also expected to increase renewable energy utilisation, improve energy efficiency and optimise resource use.
Captive model supports energy transition
The investment would provide Prism Johnson with dedicated renewable power for its cement operations while integrating energy-cost optimisation with its environmental, social and governance objectives. The project is therefore relevant to both the company’s production economics and its sustainability targets.
KUS Renewable Private Limited was incorporated in India on 26 September 2024 and has yet to commence operations. Its turnover was nil during the two financial years disclosed in the filing.
No governmental or regulatory approvals are currently required for the proposed investment, according to the company. Completion is targeted by 31 October 2027.
Outlook
The captive wind project is expected to gradually increase Prism Johnson’s renewable power utilisation once commissioned. The project’s potential impact on cement production costs will depend on the eventual power purchase terms, project commissioning and operating performance. Over 2027, execution progress and the commencement of dedicated renewable power supply are likely to determine the project’s contribution to the company’s energy-cost structure.
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