C&I

Lloyds Metals Targets 26% Stake in Gentari SPVs to Lock in Captive Renewable Power for Steel Expansion

August 20, 2026 By Gaurav Nathani 5 min read
0:00 / 05:44

Transaction Overview

Lloyds Metals and Energy Limited (LMEL) has finalized a strategic move to acquire a minimum 26% equity stake in three Special Purpose Vehicles (SPVs) managed by Gentari India (formerly Amplus Solar). This transaction represents a core component of LMEL’s corporate finance strategy to transition its energy procurement toward sustainable, price-stable sources. By integrating clean power directly into its industrial value chain, the Mumbai-headquartered steel and mining major seeks to insulate its high-growth operations from the volatility of conventional power markets.

The investment is specifically designed to provide a diversified renewable energy supply for LMEL’s energy-intensive steelmaking and iron ore mining operations. This pivot to green power is essential for the company to meet its escalating energy requirements as it scales its production capacity in Maharashtra.

Capital Structure and Equity Investment

The acquisition is structured through share subscription and shareholders’ agreements (SSSA) between LMEL and the partner entities overseeing the specific renewable assets.

  • Equity Mechanics:
    • Captive Threshold: LMEL will maintain a minimum 26% equity stake in each SPV, satisfying the ownership mandate for “captive” status under Indian electricity regulations.
    • Competitive Advantage: By achieving captive status, LMEL sidesteps the Cross-Subsidy Surcharges (CSS) and Additional Surcharges (AS) that typically inflate landed power costs for industrial open-access consumers, significantly improving the company’s cost-competitiveness.
    • Control and Voting: The investment ensures LMEL has the requisite proprietary interest and voting equity required for long-term regulatory compliance.

Investment Target Mapping

Investment Target (SPV)Partner Entity
Amplus Green One Power Private LimitedAmplus Solutions Limited
Amplus Energy One Private LimitedAmplus Solutions Limited
Amplus Ceres Solar LimitedAmplus Energy Solutions Limited

Renewable Energy Asset Portfolio

To support its industrial expansion, LMEL has secured a portfolio of wind and solar assets totaling over 100 MW in capacity for captive consumption.

Project Capacity and Resource Type

MetricDetail
Total Secured Capacity100+ MW
Resource ProfileHybrid Wind and Solar
  • Technological Mix and Synergy: The combination of wind and solar resources is intended to create a more balanced generation profile, mitigating the intermittency inherent in single-source renewables. LMEL is leveraging Gentari’s expertise in hybrid models—modeled after successful implementations like “Project Shiva”—to ensure a reliable flow of clean power. This hybrid resource approach is critical for decarbonizing the company’s manufacturing footprint and reducing dependence on fossil-fuel-based grid power.

Entity and SPV Directory

The transaction brings together a global energy major and an established Indian industrial player.

  • Primary Stakeholders: Gentari India, headquartered in Gurugram, serves as the clean energy platform for Petroliam Nasional Berhad (PETRONAS). The entity recently rebranded Amplus Solar to Gentari to consolidate its Commercial & Industrial (C&I) expertise with broader utility-scale ambitions.
  • SPV Identification: The three entities involved in this transaction are:
    • Amplus Green One Power Private Limited
    • Amplus Energy One Private Limited
    • Amplus Ceres Solar Limited
  • Investor Profile: LMEL is a prominent iron ore miner and steel producer in Maharashtra. Notably, the company’s operational scale was bolstered in 2021 when Thriveni Earthmovers & Infra joined as a co-promoter and Mine Developer and Operator (MDO), a partnership central to LMEL’s aggressive expansion in the mining sector.

Regulatory Framework: The Group Captive Model

The transaction is meticulously structured to comply with the Group Captive Model established by the Electricity Rules 2005 and the pivotal Electricity (Amendment) Rules, 2026.

  1. Legal Structure: The framework treats the SPVs as an “Association of Persons” (AoP). This allows LMEL to pool requirements with other entities if necessary, with captive status tested collectively.
  2. Compliance Thresholds: To retain the surcharge exemptions, the structure must meet two critical annual requirements:
    1. Collective Holding: Captive users must hold at least 26% of the equity with voting rights throughout the financial year.
    2. Consumption Mandate: The captive group must consume a minimum of 51% of the annual energy generated by the plant.
  3. Financial Incentives: The 2026 framework provides regulatory certainty for this model, allowing industrial users to bypass state-imposed surcharges. This reduces operational overhead and provides a predictable, long-term energy tariff.

Operational Integration and Usage

The renewable power will be utilized across LMEL’s primary industrial hubs in Maharashtra, specifically at Ghugus, Konsari, and Surjagarh.

  • Industrial Application: This clean energy supports several energy-intensive production targets:
    • The ramping up of dispatchable iron ore capacity toward 26 MTPA.
    • Direct Reduced Iron (DRI) / Sponge Iron production.
    • Development of integrated steel facilities, including a 1.2 MTPA wire-rod plant and a future 3 MTPA Hot Rolled Coil (HRC) facility.
  • Agreement Duration: In line with standard project financing for the Gentari/Amplus portfolio, these arrangements are underpinned by long-term Power Purchase Agreements (PPAs) with an average tenure of approximately 24 years. This long-term commitment provides LMEL with energy security and a durable hedge against rising industrial electricity tariffs for more than two decades.

Official Citations (Rich-Text Copy & Paste)

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