Ceigall India Limited’s subsidiary has signed a ₹17 billion Power Purchase Agreement with Rewa Ultra Mega Solar Limited to develop a 220 MW solar-plus-storage project at Morena Solar Park, Madhya Pradesh. Moving forward at a tariff of ₹2.70/kWh, the integrated facility will provide stable peak-load grid management.
MUMBAI — Infrastructure and engineering major Ceigall India Limited has officially executed a formal Power Purchase Agreement (PPA) with Rewa Ultra Mega Solar Limited (RUMSL) to establish a 220 megawatt (MW) grid-connected solar power project. Signed on Monday, June 29, 2026, through its wholly owned subsidiary Ceigall Morena Solar BESS Park Limited, the contract features a highly competitive tariff rate of ₹2.70 per kilowatt-hour (kWh). The comprehensive green energy undertaking represents an estimated corporate project value of ₹17 billion (₹1,700 crore), marking Ceigall's largest single expansion into the domestic renewable energy infrastructure segment.
Technological Integration of Battery Storage at Morena
The newly formalized project will be constructed within the boundaries of the Morena Solar Park in Madhya Pradesh. Departing from conventional standalone solar generation architectures, the facility is structurally engineered to incorporate advanced Battery Energy Storage Systems (BESS) alongside a ground-mounted solar photovoltaic array.
According to statutory disclosures submitted by the company, the integrated layout is designed to address the persistent issue of seasonal load fluctuations on regional power transmission grids. By capturing excess solar power during peak daytime generation windows, the internal battery components can discharge steady, dispatchable electricity into the grid during high-demand evening hours. This specific capability improves overall grid reliability and ensures optimal peak-load management for the state’s electricity distribution companies (discoms).
Financial Commitments and Execution Timelines
The PPA structures clear execution and long-term operating guidelines between the engineering firm and the state utility provider:
The Construction Window: The engineering, procurement, and construction (EPC) phase is legally slated for completion within a strict 18-month timeline.
Long-Term Revenue Runway: The power supply commitment mandates a persistent 25-year operational lifecycle, providing reliable, long-term revenue visibility for the parent company.
Capital Outlay: The approximate investment baseline of ₹1,700 crore includes all localized components and mandatory Goods and Services Tax (GST) allocations.
Independent Selection: The project was secured via a tariff-based competitive bidding process, ensuring that the transaction does not involve structural related-party interests.
Diversification Strategy and Broader Corporate Impact
The execution of the Morena Solar Park contract reflects Ceigall India’s aggressive corporate strategy to diversify its order book beyond its traditional core competency in specialized transport infrastructure. Historically recognized for designing complex highways, bridges, elevated flyovers, and tunnels across multiple states, the company has consistently scaled its clean energy pipeline over the current fiscal cycle.
Financial analysts note that moving into utility-scale solar-plus-storage assets significantly alters the company's financial profile. Unlike standalone public infrastructure projects that depend entirely on milestone-based government payments, operating under a 25-year utility PPA unlocks a steady stream of predictable, recurring cash flows. This balanced revenue matrix improves the firm's long-term creditworthiness and insulates its core capital structure from localized slowdowns in public sector construction spending.
Official Sources Section
Operational timelines, contract awards, and technical specifications are verified through official corporate filings submitted directly to the National Stock Exchange of India (NSE) and BSE Limited. Regulatory parameters, clean energy targets, and solar park infrastructure guidelines are tracked via data portals maintained under the Ministry of New and Renewable Energy (MNRE).
Quote Section
"The award strengthens the company's presence in the clean-energy segment and aligns with India's target of achieving 500 GW of non-fossil fuel capacity," Ramneek Sehgal, Chairman and Managing Director of Ceigall India Limited, stated to investors. "Integrated solar and storage solutions are critical for delivering reliable and dispatchable renewable power. This project allows us to support national sustainability goals while building a highly diversified asset base."
Why It Matters
For regional electricity consumers and local businesses in Madhya Pradesh, the addition of a BESS-backed 220 MW solar facility minimizes the risk of afternoon blackouts and stabilizes voltage delivery profiles. For the broader Indian economy, securing a utility-scale solar tariff at ₹2.70 per kWh demonstrates that green technology can compete effectively on price with traditional fossil-fuel power. This affordability supports the manufacturing sector's decarbonization goals without burdening industrial balance sheets with high energy overhead costs.
Key Facts at a Glance
Project Scope: Delivery of a 220 MW grid-connected solar power project integrated with battery storage.
Contracted Price: Settled at a competitive tariff rate of ₹2.70 per kWh through competitive bidding.
Total Value: Calculated at approximately ₹17 billion (₹1,700 crore), inclusive of all applicable GST.
Development Site: Permanently designated for construction at the Morena Solar Park in Madhya Pradesh.
Operational Duration: Spans an 18-month construction window followed by a 25-year power supply agreement.
FAQ Section
What is a solar-plus-storage (BESS) project?
It is an integrated power facility that pairs a standard solar panel installation with an industrial-scale battery system. The batteries store excess electricity generated during peak sunny hours and discharge it later when solar production drops, ensuring a continuous and reliable power supply.
Who is purchasing the electricity generated by Ceigall India at Morena?
The electricity will be sold directly to Rewa Ultra Mega Solar Limited (RUMSL) under a long-term contract to support the public distribution grid across Madhya Pradesh.
How does this contract benefit Ceigall India’s existing shareholders?
The project adds ₹17 billion to the company's expanding order book and introduces stable, predictable cash flows for the next 25 years. This expansion into renewables balances its traditional, cyclical infrastructure revenues and improves its overall financial resilience.
Source: National Stock Exchange of India Compliance Filings, BSE Limited Corporate Announcements, Ceigall India Limited Corporate Communications Desk.
