GURUGRAM, April 15, 2026 – J.K. Cement Limited has moved to accelerate its decarbonization strategy by subscribing to a strategic equity stake in Mehrauni Electro Power Private Limited (MEPPL). The investment, announced in a regulatory filing on Monday, is designed to secure a dedicated solar power supply for the company’s Prayagraj manufacturing unit under a Group Captive model, effectively mitigating energy price volatility through long-term renewable procurement.
Powering the Prayagraj Plant
The transaction facilitates the procurement of 7 MWp of solar power destined for JK Cement’s Prayagraj plant. This energy will be sourced from a utility-scale solar facility with a total capacity of 40 MW AC located in Village-Bihariya, Tehsil-Bara, within the Prayagraj District of Uttar Pradesh. By utilizing the Group Captive framework, JK Cement is able to bypass traditional distribution hurdles and stabilize its long-term power costs.
This move is a direct response to the Uttar Pradesh Solar Energy Policy 2022, a regional regulatory driver aimed at achieving 22,000 MW of solar capacity by 2026-27. For industrial consumers like JK Cement, the policy provides a highly conducive environment for private sector investment, offering critical financial incentives such as a 50% exemption on wheeling and transmission charges for intra-state captive power use.
Equity Stake and Financial Terms
JK Cement’s investment in the Special Purpose Vehicle (SPV) involves a total cash consideration of ₹2,10,00,000 (Rupees Two Crore Ten Lakh). The company has acquired 21,00,000 equity shares at a face value of ₹10 per share, resulting in a 9.77% ownership stake in MEPPL. The company confirmed that the transaction was conducted at arm’s length, with no prior interest held by the promoter group in the target entity.
The acquisition of this equity stake serves as the primary mechanism enabling the captive power benefits. The transaction was finalized pursuant to the execution of both a Share Subscription and Shareholders’ Agreement (SSHA) and a Power Purchase Agreement (PPA).
Corporate Profile and Greenfield Development
Mehrauni Electro Power Private Limited is a relatively new entity, incorporated on November 6, 2023, as an SPV under Onward Solar Power Private Limited. As a greenfield project in its early development and capital-intensive phase, MEPPL’s financial status as of March 31, 2025, reflects its startup nature, reporting a turnover of Nil and a negative net worth of ₹13 lakh.
Strategic Alignment with Regional Policy
The investment underscores JK Cement’s broader commitment to “greenifying” its supply chain and increasing the renewable mix in its energy intensive operations. By aligning with the Uttar Pradesh Solar Energy Policy 2022, the cement major leverages a framework that promotes third-party sales and utility-scale solar projects through robust regulatory support. This strategic alignment not only helps the company meet its sustainability targets but also positions it to benefit from the state’s vision of creating a holistic green energy corridor, particularly in the solar-rich regions of Uttar Pradesh.
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