Rama Steel Tubes Limited (RSTL) has announced a major strategic move by entering the renewable energy sector through a Joint Venture (JV) participation in a 225 MW solar power project. The initiative is part of the Government of India’s PM-KUSUM scheme, which promotes solar power generation in rural areas and supports sustainable infrastructure.
The solar power project is being developed under Onix IPP, a Special Purpose Vehicle (SPV), and is spread across multiple locations in Maharashtra. Onix IPP has secured Power Purchase Agreements (PPAs) with the Maharashtra State Electricity Distribution Company Limited (MSEDCL) at a fixed tariff of ₹3.04 per unit for a duration of 25 years.
RSTL holds a 10% equity stake in Onix IPP, ensuring a proportional share of the revenue from the project. With this stake, the company expects:
This recurring income offers a stable, long-term financial stream for Rama Steel Tubes, adding a green component to its earnings mix.
The investment aligns with RSTL’s commitment to Environmental, Social, and Governance (ESG) principles. It also supports the government’s PM-KUSUM initiative, which aims to utilize barren and government-owned lands for clean energy production. Additionally, the project is expected to drive rural development and create employment opportunities in local communities.
Mr. Richi Bansal, Whole Time Director & Chief Executive Officer, Rama Steel Tubes Limited, said, “We are proud to be part of this landmark renewable energy initiative. Our strategic investment in the 225 MW PM-KUSUM project not only strengthens our ESG profile but also diversifies our revenue base. This is a future-forward step aligned with India’s net-zero vision and rural empowerment.”
On June 6, 2025, Rama Steel share price opened at ₹13.73, slightly up from its previous close of ₹13.20. At 9:58 AM, the share price of Rama Steel was trading at ₹14.18, up by 7.42% on the NSE.
Also Read: Trump Doubles US Steel and Aluminium Tariffs to 50% Amid Renewed Trade Tensions!
With this strategic entry into the solar power sector, Rama Steel Tubes not only diversifies its revenue base but also positions itself as a forward-looking company committed to sustainability and long-term value creation.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jun 6, 2025, 10:11 AM IST
Nikitha Devi
Nikitha is a content creator with 6+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
