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Sunflag to Acquire 26% Stake in Sunsure’s 11 MW Solar Project for Captive Power Supply

Sunflag Iron and Steel, based in Nagpur, has entered into a long-term Power Purchase Agreement (PPA) with Sunsure Energy to source power from an upcoming 11 MW solar project in Dhule, Maharashtra, developed by Sunsure’s SPV, SunsureSolarparkThirty Seven. To facilitate the deal and secure captive access, Sunflag will invest Rs0.725 crore in exchange for a 26% equity stake in the project. The equity will be subscribed to in tranches, with no regulatory approvals required for the arrangement.

The agreement spans 25 years and supports Sunflag’s environmental, social, and governance (ESG) goals, aligning with its previous renewable energy commitments. In 2023, Sunflag entered similar deals with ReNew Power, acquiring a 31.2% stake in three SPVs to procure 71.34 MW of solar power.

This investment aligns with broader decarbonization efforts in India’s steel sector, which contributes 10–12% of national emissions. India’s steel emissions are 2.54 tons of CO2 per ton of steel, compared to the global average of 1.91, making clean energy adoption a strategic necessity—especially amid growing pressure from the EU's Carbon Border Adjustment Mechanism (CBAM).

Sunflag follows the recent move by Jindal Stainless’s JSL Super Steel, which partnered with Sunsure to procure 11 MW of solar power in Uttar Pradesh.