Sambhv Steel Tubes Approves ₹25 Crore Investment for 8 MW Captive Solar Power Plant
Sambhv Steel Tubes Limited has announced plans to strengthen its manufacturing operations with a significant investment in renewable energy. The company’s Board of Directors has approved the setting up of an 8 MW captive behind-the-meter rooftop solar power plant at its manufacturing facilities in Kuthrel, Chhattisgarh.
The decision was taken during the board meeting held on August 3, 2026, and forms part of the company’s strategy to reduce energy costs while improving sustainability.
₹25 Crore Investment in Solar Power
Sambhv Steel Tubes plans to invest up to ₹250 million (approximately ₹25 crore) in the project. The investment will be funded through a mix of internal accruals, debt, or lease financing, depending on what the company considers most suitable during implementation.
Project to Be Completed in Two Phases
The company will develop the solar power plant in two stages:
- Phase I: Up to 3.2 MW, expected to be completed during FY2028.
- Phase II: Up to 4.8 MW, targeted for completion in FY2029.
Once both phases are completed, the total installed capacity will reach 8 MW.
Why the Company is Investing in Solar Energy
According to Sambhv Steel Tubes, the captive solar power plant will primarily supply electricity to its manufacturing facilities.
The company expects the project to:
- Reduce dependence on grid power.
- Lower electricity costs.
- Improve energy efficiency.
- Support long-term sustainable manufacturing.
- Enhance operational cost optimization.
Captive solar projects are becoming increasingly popular among manufacturing companies as they help reduce operating expenses while supporting environmental goals.
What is a Behind-the-Meter Solar Plant?
A behind-the-meter captive solar power plant generates electricity directly for a company’s own facilities instead of supplying power to the public grid. This allows businesses to consume the electricity they produce, reducing reliance on external power sources and improving energy security.
Such projects can also provide protection against rising electricity tariffs and help companies achieve their sustainability targets.
Energy is one of the major operating costs for steel manufacturers. By investing in renewable energy infrastructure, Sambhv Steel Tubes aims to improve cost efficiency while making its manufacturing operations more environmentally friendly.
The 8 MW solar project reflects the company’s focus on building a more sustainable and efficient business. As the project is completed over the next few years, it is expected to support both operational savings and the company’s long-term growth strategy.