JK Cement Limited has formalized a strategic acquisition of a 26% equity stake in Truere Guj SPV Private Limited, a subsidiary of Oriana Power Limited, for a total consideration of ₹4.22 crore. This investment facilitates a long-term Power Purchase Agreement (PPA) for a 50/70 MWp solar power facility integrated with a 111.57 MWh Battery Energy Storage System (BESS) located in Rajasthan. By securing this captive capacity, JK Cement is effectively de-risking its energy supply chain against grid volatility and conventional power price surges, while advancing its goal to meet 75% of its energy requirements from green sources by 2030.
Project Specifications and Geographic Scope
The project represents a high-specification renewable asset designed to provide stable, carbon-neutral power to JK Cement’s industrial infrastructure.
- Project Location: Phalodi district, Rajasthan.
- SPV Corporate Seat: Uttar Pradesh (Entity based in UP; project site in Rajasthan).
- Beneficiary Facility: JK Cement’s Nimbahera manufacturing plant, Chittorgarh district, Rajasthan.
- Total Power Supply: 50/70 MWp (peak capacity) of solar power linked with a 111.57 MWh BESS for efficient energy management and surplus power storage.
- Operational Intent: The integration of BESS allows for the storage of surplus generation, ensuring a more consistent power profile to offset conventional grid dependence and meet 2030 sustainability mandates.
The Group Captive Model and Regulatory Framework
This transaction is structured under the “Group Captive” model, leveraging the regulatory clarity provided by the Electricity (Amendment) Rules, 2026 (notified March 14, 2026), and Rule 3 of the Electricity Rules, 2005.
- Equity and Ownership: To maintain captive status, the user (JK Cement) must hold a minimum of 26% ownership in the generating plant. The 2026 amendments provide increased legal robustness for modern corporate structures, allowing subsidiaries and holding companies to satisfy ownership requirements through special purpose vehicles (SPVs).
- Verification and Implementation: Effective April 1, 2026, captive status verification will be centralized under designated nodal agencies. Intra-state consumption will be verified by state agencies, while inter-state consumption falls under the National Load Despatch Centre (NLDC).
- Regulatory Risk Mitigation: Under the new framework, Cross-Subsidy Surcharges (CSS) and Additional Surcharges (AS) are not levied pending verification. However, the rules introduce a significant “carrying cost” penalty—calculated at the base rate of the Late Payment Surcharge Rules, 2022—should a plant fail to qualify as a captive generating plant upon audit.
Financial Structure and SPV Profile
The investment was executed via a Share Subscription and Shareholders’ Agreement (SSHA) as a cash-based, arm’s length transaction.
Share Subscription Details
| Detail | Specification |
| Number of Equity Shares | 32,76,000 |
| Face Value per Share | ₹10 |
| Share Premium | Approximately ₹2.88 per share |
| Total Consideration | ₹4,22,21,400 |
SPV Financial Status
- Entity Name: Truere Guj SPV Private Limited (Subsidiary of Oriana Power Limited).
- Incorporation Date: January 2024.
- Net Worth (as of March 31, 2025): ₹69.08 crore.
- Financial Performance: Reported a net loss of ₹0.48 crore for the period ending March 31, 2025. As the project is in the development phase, no turnover was reported for the 2024-25 financial year.
Corporate Strategy and Market Context
The acquisition of the Truere Guj stake is part of a broader sector-wide trend where industrial majors are vertically integrating renewable assets to shield operations from escalating energy costs. Peers such as Dalmia Bharat have recently pursued similar equity-linked solar-plus-storage deals with Oriana Power, signaling a standardizing model for industrial decarbonization in India.
This project complements JK Cement’s existing green energy portfolio at the Mangrol-Nimbahera complex, which features:
- Waste Heat Recovery Board (WHRB): A system that was strategically expanded from 20 MW to 30 MW to capture waste gases across three production lines (Line-1, Line-2, and Line-3).
- Existing Solar Capacity: A 5.6 MW solar plant currently serving the site and colony.
By adding 70 MWp of solar and 111.57 MWh of BESS capacity, JK Cement is significantly hardening its Nimbahera facility against the financial impact of the 2026 regulatory shift while securing the “captive” exemptions necessary to maintain long-term industrial competitiveness.
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