Birla Cable Ltd has terminated its power purchase agreement with Continuum MP Windfarm Development for wind-based energy supply. The company has notified the exchanges that the agreement stands cancelled as per contractual provisions. Management does not foresee any material adverse impact on operations and will evaluate alternative power sourcing options going ahead.
Birla Cable Ltd has informed the stock exchanges that it has discontinued its power purchase agreement with Continuum MP Windfarm Development Pvt Ltd, which was entered into to procure renewable wind energy for its operations. The termination follows the terms and conditions embedded in the PPA, including applicable notice and exit provisions.
The company indicated that it will continue to meet its energy requirements through other existing arrangements and, if required, fresh tie-ups with power suppliers or utilities. At this stage, the termination is not expected to materially affect production, though the impact on power costs will depend on future contracts and market tariffs.
Key highlights
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Termination of PPA between Birla Cable Ltd and Continuum MP Windfarm Development Pvt Ltd.
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Agreement was for procurement of wind-based renewable power for Birla Cable’s operations.
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Termination executed in line with contractual clauses and due process.
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Company expects no significant disruption to manufacturing or service levels.
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Birla Cable to explore alternate power sourcing and monitor cost implications.
Sources: Company communication / stock-exchange intimation by Birla Cable Ltd regarding termination of PPA with Continuum MP Windfarm Development Pvt Ltd.