Bangalore Metallurgical Commissions 5.5 MWp Open-Access Solar Project in Karnataka; Projected to Save ₹52M Annually

Project Commissioning and Impact

Bangalore Metallurgicals Private Limited (BMPL) has successfully commissioned a 5.5 MWp open-access solar project to power its energy-intensive foundry operations in Karnataka. Developed and funded by Candi Solar, the installation is projected to deliver annual electricity cost savings of ₹52 million. By leveraging Karnataka’s regulatory framework for open access, the project allows BMPL to transition its high-load metallurgical processes to renewable energy, significantly enhancing manufacturing margins and long-term financial predictability.

Project Specifications and Regional Context

The 5.5 MWp ground-mounted solar installation operates under the state’s open-access model, allowing the facility to procure renewable power via the grid from an off-site generation source.

• Regional Solar Potential: The project’s feasibility is underpinned by high irradiance levels in the region. Technical data for the Chitradurga area indicates an annual average daily solar radiation of 5.61 kWh/m²/day. Critically for industrial load planning, peak radiation reaches 6.7 kWh/m²/day in April, providing maximum generation during the high-demand summer months.
• Regulatory Framework: The project is governed by the Karnataka Electricity Regulatory Commission (Terms and Conditions for Open Access) Regulations, 2025. These regulations were introduced following the High Court’s decision to strike down the 2022 Green Energy Open Access (GEOA) rules, providing a refreshed legal landscape for industrial compliance. Per the 2025 mandate, the project adheres to the 100 kW minimum contract demand threshold for high-tension (HT) connections and utilizes smart meters with 15-minute granularity and time-of-day recording to ensure grid stability and transparent settlement.

Financial Architecture: The Performance Linked Loan (PLL) Model

The project employs a Performance Linked Loan (PLL) structure, a “Pay As You Generate” financing model designed to align the developer’s incentives with the client’s operational output.

• The PLL Mechanism: Repayments are calculated based on actual kWh production delivered to the BMPL facility. This ensures that if the system underperforms due to technical issues, the client’s repayment obligations decrease proportionately, effectively offloading performance risk to Candi Solar.
• Tax and Investment Incentives: A primary driver of the PLL model is that BMPL maintains the solar asset on its balance sheet from day one. This ownership status unlocks several fiscal advantages:
  • 40% Accelerated Depreciation (AD): Eligibility to claim a 40% depreciation deduction in the first year of operation, significantly reducing taxable income.
  • GST Input Tax Credit: The ability to claim a full input tax credit on the system cost, which improves project payback periods and early-year liquidity.
• Risk Mitigation: While BMPL retains ownership for tax purposes, Candi Solar manages the end-to-end design, construction, and long-term operations and maintenance (O&M), insulating the manufacturer from technical and operational volatility.

Strategic Stakeholder Roles

The project’s execution relies on a partnership between a well-capitalized developer and a regional infrastructure specialist:

• Developer and Funder: Candi Solar provided the tailored PLL financing and oversees long-term performance. The company’s scale is evidenced by its recent $58.5 million funding round led by the International Finance Corporation (IFC). In the last 18 months, Candi’s portfolio has doubled to over 220 MWp, which includes 85 MWp of dedicated open-access projects across India.
• EPC and Installation: Integrum Energy Infrastructure Limited served as the Engineering, Procurement, and Construction (EPC) partner. Based in Bangalore, Integrum managed the physical installation and technical commissioning of the 5.5 MWp array.

Industrial Impact: Solar for the Metallurgical Sector

For a heavy industry player like BMPL, which specializes in the manufacture of cast and ductile iron with a capacity of 600 tons per month, electricity is a dominant operational expense. The inherent cyclicality of the iron and steel industry makes foundries particularly vulnerable to grid tariff volatility and fluctuating raw material prices.

Integrating solar power into the energy mix provides a hedge against these market fluctuations. By powering induction furnaces and auxiliary equipment with predictable, lower-cost renewable energy, the Hosakote-based facility gains a competitive advantage in cost-per-ton production.

Project Profile

The 5.5 MWp solar installation for Bangalore Metallurgical is now fully commissioned and delivering power to its Hosakote manufacturing site. The project integrates into BMPL’s broader energy procurement strategy, utilizing the current Karnataka open-access regulatory framework to optimize electricity costs. This commissioning marks the completion of the physical deployment phase and the transition into the long-term performance-linked operational phase.

Official Sources

• Integrum Energy Infrastructure Limited: Draft Red Herring Prospectus (DRHP) – Regulatory Filing.
• Karnataka Electricity Regulatory Commission (KERC): Open Access Regulations 2025 and Grid Stability Mandates.
• Securities and Exchange Board of India (SEBI): Issue of Capital and Disclosure Requirements (ICDR) Regulations.
• Ministry of New and Renewable Energy (MNRE): National Wind-Solar Hybrid Policy and Approved Models and Manufacturers (ALMM) Guidelines.
• Acuité Ratings & Research: Credit Rating Reaffirmation for Bangalore Metallurgicals Private Limited.