Ceigall India Signs 130 MW Solar Power Deal

Ceigall India Limited has signed agreements to develop 130 MW of solar power capacity in Madhya Pradesh. Through its subsidiary Ceigall Green Energy MP Limited, the company secured 15 Power Purchase Agreements (PPAs) with Madhya Pradesh Power Management Company Limited (MPPMCL). The deals are set for 25 years at a tariff of ₹2.85 per unit, with an estimated EPC cost of ₹572 crore.

This move marks a significant entry into the renewable energy sector for Ceigall India, which has primarily focused on infrastructure development and EPC contracts. The company is expanding its business beyond traditional EPC work into power generation and supply, aligning with national goals for clean energy capacity.

The solar projects are part of the Surya Mitra Krishi Feeder Yojana and are expected to be completed within a 12-month execution timeline. The agreements are effective from April 1, 2026.

The venture is set to add recurring revenue streams from power sales and enhance Ceigall India's capabilities in solar project development. Shareholders can expect improved revenue visibility due to the long-term nature of the PPAs.

Ceigall India enters a competitive solar market. Peers like Sterling and Wilson Renewable Energy and Larsen & Toubro have established track records in solar EPC. Key risks for the company include successfully completing the 130 MW projects within the 12-month deadline and ensuring contract compliance and timely payments from MPPMCL over the 25-year PPA term.

Madhya Pradesh Power Management Company (MPPMCL) manages power procurement for the state. The Surya Mitra Krishi Feeder Yojana aims to boost solar power generation from agricultural areas.

Investors will be watching the progress of the 12-month construction phase and the subsequent commencement of commercial operations. Further announcements on Ceigall India's renewable energy expansion plans will also be key.