Leading tyre manufacturer Apollo Tyres Ltd. (ATL) has picked up a 27.2% stake in CSE Deccan Solar, a subsidiary of Cleantech Solar, to get a guaranteed supply of 40 million units of solar power per annum for its Oragadam plant.
The plant near Chennai has an installed capacity to produce about 900 tonnes of tyres per day that includes tyres for passenger vehicle and light, medium and heavy commercial vehicles. ATL had invested ₹9.3 crore and the supply is likely to begin from July .
Considering that solar power gets produced only for few hours every day, and there is no storage facility available, ATL opted for an offtake of an optimum quantity, which is about 20% of the total requirements in Chennai, it said in a statement.
“This investment to secure solar power for our Chennai facility, is one of the several initiatives that we are undertaking towards a sustainable future. The solar power that we are securing with this investment, will help us become self-sufficient for our power requirements for critical equipment, and strengthen our commitment towards reduction of carbon emissions,” said Sunam Sarkar, President & Chief Business Officer.
He also said that the rate of solar power fixed for the next two decades is currently lower than the per unit rate of State Electricity Board.
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