Ramkrishna Forgings Limited, one of the largest forging companies in India, has recently announced its plans to set up 85 megawatts (MW) of solar power capacity. The move comes as a part of the company’s efforts to promote sustainable and renewable energy sources and tackle climate change. CFO Lalit Khetan shared the details of the plan.

Ramkrishna Forgings Limited (RKFL) is a Kolkata-based company that mainly specializes in manufacturing forged and machined components for automotive and engineering sectors. The company has a rich history of over 3 decades, having been established in 1981. Over the years, the company has diversified into various industrial verticals, including wind power generation, infrastructure development, real estate, and more.

Recently, RKFL has made headlines with its decision to invest in solar power production. Lalit Khetan, the Chief Financial Officer of RKFL, shared some details about the proposed project. Khetan explained that the company plans to set up a total of 85 MW of solar power capacity across various locations in the country. He added that the project would require an investment of approximately ₹350 crore ($48 million) and would be funded through a mix of debt and equity.

The CFO revealed that the solar capacity would be divided into four different phases. The first phase of 25 MW would be commissioned by 2022, followed by another 25 MW in 2023, and the remaining 35 MW by 2024. The solar power plants would be installed across various locations in the states of Maharashtra, Rajasthan, and Karnataka. Khetan mentioned that the company has already acquired the necessary land for the projects and has received all the required permits and approvals.

Khetan highlighted that setting up solar power capacity was a strategic decision for RKFL. He mentioned that the company aims to reduce its carbon footprint and promote more sustainable practices. The CFO revealed that the solar power generated by the plants would be used for captive consumption, reducing the dependency on the traditional grid-based power supply. He added that by generating electricity using solar power, the company would avoid the emissions caused by burning fossil fuels such as coal and oil.

The CFO also noted that the project aligns with the Government of India’s ambitious renewable energy targets. India has committed to generating 175 GW of renewable energy by 2022, of which 100 GW is envisioned to come from solar power. The government has been incentivizing renewable energy deployment through various policies, including subsidies, tax exemptions, and more. Khetan remarked that the RKFL’s project would contribute towards the nation’s renewable energy goals.

Moreover, the CFO also commented on the economic benefits of the project. He noted that by avoiding the costs associated with purchasing power from the grid, the company would reduce its operating expenses, resulting in increased profitability. Additionally, the savings earned in electricity costs could be reinvested back into the company, leading to further growth opportunities.

Khetan concluded by stating that the project was just one of RKFL’s many initiatives towards promoting sustainable and green practices. He revealed that the company also plans to set up a rainwater harvesting system, switch to LED lighting, and promote the use of electric vehicles. He felt that all these efforts would enable RKFL to become a more environmentally conscious company and a responsible corporate citizen.

In conclusion, Ramkrishna Forgings Limited’s decision to invest in solar power is indeed a commendable move. The project aligns with the company’s sustainability goals, promotes renewable energy, and reduces dependency on fossil fuels. With the support of the Government of India’s policies and the declining costs of solar technology, RKFL’s project could serve as a model for other companies to follow. With more and more Indian businesses embracing green practices, the nation’s transition to a low-carbon economy could be accelerated, benefiting not only the environment but also the economy as a whole.