Subsidiary Signs 25-Year Captive Wind PPA With Prism Johnson for 49.5 MW Project
CESC's step-down arm KUS Renewable signed a 25-year group captive PPA with Prism Johnson for a 49.5 MW wind plant in Ratlam, MP (COD 25 Jan 2028).
By ScoutQuest · · 2 min read
- Wind Plant Capacity
- 49.5 MW
- PPA Duration
- 25 years
- Commercial Operation Date
- 25 January 2028
- Prism Johnson Investment
- Up to INR 40 crores for 26.5% equity
- Purvah Green Power Stake
- 73.5%
What was announced
CESC Limited intimated the exchanges that Prism Johnson Limited (PJL) entered into a Power Purchase Agreement on September 25, 2026 under the captive model with KUS Renewable Private Limited (KRPL), a wholly owned subsidiary of Purvah Green Power Private Limited, which is itself a subsidiary of CESC.
- The PPA covers power for PJL's cement production facility at District Satna, Madhya Pradesh.
- Supply will come from a 49.5 MW wind power plant to be constructed by KRPL at Tehsil Alot, District Ratlam, Madhya Pradesh.
- The press release describes it as a ~25-year agreement.
- Scheduled commercial operation date: 25th January 2028.
The investment structure
Simultaneously, PJL, KRPL and PGPPL executed a Share Subscription and Shareholder's Agreement (SSSHA).
- PJL shall invest an amount not exceeding INR 40 crores for 26.5% equity and redeemable preference shares of KRPL, in three tranches.
- Purvah will hold the remaining 73.5% of the project company.
- Subscription is expected to be completed tentatively by October 31, 2027 (three months prior to the commercial operation date).
- The transaction is stated to be not a related party transaction, and PJL does not belong to the promoter/promoter group/group companies.
- KRPL did not contribute to CESC's turnover and net worth in the last financial year ended March 31, 2026.
Why the captive structure matters
Per the press release, PJL's 26.5% stake meets the ownership threshold for captive generation under Rule 3 of the Electricity Rules, 2005. Qualifying captive arrangements are exempt from the cross-subsidy surcharge and additional surcharge levied by state distribution companies, lowering the consumer's delivered power cost while giving the generator a long-term offtaker holding equity in the asset. The agreement follows the Electricity (Amendment) Rules, 2026.
The project will be funded through a combination of debt and equity, with equity contributed in proportion to ownership.
Context on Purvah's portfolio
- This is Purvah's first commercial and industrial (C&I) power supply agreement, alongside its utility-contracted portfolio.
- RPSG's stated plan is to build a renewable platform of more than 10 GW.
- Following its August 2026 agreement to acquire a 1.4 GWp operating solar portfolio from ReNew Solar Power for an enterprise value of ₹4,859 crore, Purvah's contracted capacity stands at 4.8 GWp, of which 1.8 GWp is operational, with a further 2.2 GWh of battery storage under implementation.
- CESC serves 4.7 million consumers across seven locations.
- CRISIL Ratings expects C&I renewable capacity to rise from around 40 GW at end-FY2026 to 57 GW by FY2028.
How investors may read it
The update marks entry into a new customer segment for the group's renewable platform, with a long-tenure offtake and a partner taking minority equity in the project company. The plant is yet to be constructed, with generation and any earnings contribution expected only from the scheduled commercial operation date. The disclosure was made on a voluntary basis as a good corporate governance practice.
Also from CESC
Allotment of 19,000 Unlisted NCDs Worth Rs 190 Crore to Kotak Mahindra Bank
24 Sep 2026
More numbers
- Wind project capacity49.5 MW
- PJL investment cap in KRPLINR 40 crores
- PJL stake in project company26.5%
- Purvah stake in project company73.5%
- PPA tenure25 years
- Number of investment tranchesthree tranches
- ReNew solar portfolio enterprise value₹4,859 crore
- ReNew operating solar portfolio acquired1.4 GWp
- Purvah contracted capacity4.8 GWp
- Purvah operational capacity1.8 GWp
- Battery storage under implementation2.2 GWh
- CESC consumers served4.7 million
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