Captive solar power plant project at Chennai terminated by mutual agreement

Sona BLW and the Cleantech Group have mutually agreed to terminate the captive solar power plant project at Chennai.

Tue 6 Oct 2026

Termination Effective Date

September 25, 2026

Termination Payment / Compensation

No termination payment, compensation or damages

Stated Impact

No impact on operations or financial position

The company has informed the stock exchanges that the captive solar power plant project planned at Chennai stands terminated, by mutual agreement with the Cleantech Group.

What has been terminated

• The Power Purchase Agreement, Share Subscription Agreement, Shareholders' Agreement and all ancillary agreements, deeds, undertakings, letters and arrangements. The update calls these together the Project Documents.
• These were entered into with Seeyel Renewables Private Limited and CSE Development (India) Private Limited.
• The agreements were executed on February 26, 2026 and March 26, 2026.

How the termination takes effect

• The parties mutually agreed to terminate the project with effect from September 25, 2026.
• This follows a mutual termination letter accepted by Seeyel Renewables Private Limited and CSE Development (India) Private Limited on October 5, 2026, and received by the company on October 6, 2026.
• The company had earlier intimated the exchanges about the approval of this investment on April 30, 2024 and April 30, 2026.

Reasons the update gives for the termination

• The company reviewed its business strategy, manufacturing footprint, operational requirements and future energy procurement plans, including developments arising from its joint venture initiatives and a revised operating model.
• The power requirements originally contemplated under the Project Documents have materially changed.
• The Conditions Precedent contemplated under the Project Documents were not satisfied within the stipulated timelines and were not mutually extended by the parties.

Impact stated in the update

• The termination will have no impact on the operations or financial position of the company.
• There is no termination payment, compensation, damages or admission of default or liability.

What to keep in mind

• This is an intimation that a planned project has been called off by mutual agreement between the parties.
• The update does not describe any claim by one party against the other, and states that no payment or compensation arises from the termination.

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