Ambuja Cements To Invest Rs 6,000 Crore To Build 1,000 MW Renewable Power Projects
Ambuja Cements Ltd. will invest Rs 6,000 crore to build a 1,000-megawatt renewable power project to transition to green energy.
Ambuja Cements will power 60% of its planned 140 million tonnes a year capacity with green power, the cement maker said in an exchange filing. This investment encompasses portfolio of solar and wind power projects across Gujarat and Rajasthan, it said.
The lower cost of generation from green power will reduce power cost from Rs 6.46 per kWh to Rs 5.16 per kWh, it said. This 20% reduction in cost translates into Rs 90 per metric tonne of cement by fiscal year 2028, the company said.
Ambuja Cements shift to green power mirrors billionaire Gautam Adani-controlled group’s commitment to invest $100 billion to transition to renewable energy over the next decade as part of its plan to turn net zero by 2050.
Ambuja’s plans to build a 600 MW solar power project and 150 MW wind project in Gujarat and a 250 MW solar farm in Rajasthan, according to its statement. This will be achieved by FY26—200 MW by March 2024—in addition to the existing 84 MW of solar and wind Power, it said.
"This strategic investment reaffirms our steadfast commitment to sustainable practices. We are not just aiming for a substantial increase in green power capacity but setting the stage for a transformative shift in the cement industry,” Ajay Kapur, chief executive of cement business at Adani Group, said in the statement. “They align not only with our growth trajectory but also with the national objective of de-carbonization and greener future and this helps us become competitive and sustainable.”
With all requisite approvals in place, the group is on an accelerated path to not just meet but exceed its committed ESG targets well before the initial timelines, he said.
Shares of cement maker were trading 1.12% higher at 12:20 p.m. compared with an almost unchanged Nifty 50.
