Indian Economy News

Ambuja Cements to invest US$ 720.0 million (Rs. 6,000 crore) in Green Power; targets capacity of 1,000 mw

  • IBEF
  • December 19, 2023

Ambuja Cements, a pivotal player in the Adani Group, is making a significant leap in sustainable energy with a committed investment of US$ 720.0 million (Rs. 6,000 crore) in renewable power projects, aiming for an impressive 1,000 MW capacity. This forward-looking initiative includes a diverse portfolio strategically siting solar and wind power projects across Gujarat and Rajasthan. The ambitious plan outlines a substantial 600 MW Solar Power project and a 150 MW Wind Power project in Gujarat, along with a significant 250 MW Solar Power project in Rajasthan, as detailed in a regulatory filing on Monday.

The company is set to achieve this milestone by FY 2026, with an intermediate target of 200 MW by March 2024, supplementing the existing 84 MW of Solar & Wind Power. This strategic shift towards green power is not only environmentally impactful but also economically advantageous. With a lower cost of generation from these renewable sources, the power cost is anticipated to decrease from Rs. 6.46 per kWh to Rs. 5.16 per kWh. This translates to a substantial reduction of US$ (0.078) Rs. 1.30 per kWh, equivalent to a 20% decrease. Importantly, this reduction will have a cascading effect, leading to a cost saving of US$ (1.08) Rs. 90 per metric ton of cement for the targeted capacity of 140 MTPA by FY 2028, significantly contributing to the company's Environmental, Social, and Governance (ESG) targets.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.