Transrail Lighting will invest up to Rs 20 crore for a 49% stake in NOPL Pace Green Energy, marking its entry into solar power.

The company disclosed the board’s decision to the exchanges in a filing on Monday, 19 October. It will pay in cash.

Until now, Transrail has focused on engineering and building projects for clients. This deal takes it into producing power.

It expects to help build the solar plants and own them over the long term. Once they run, they could bring in regular income.

NOPL is developing about 990 MW of solar capacity in Maharashtra under the Centre’s PM-KUSUM scheme.

The plants will feed farm power lines, so farmers get electricity for irrigation during the day.

The project already has a buyer. Maharashtra State Electricity Distribution Company Ltd (MSEDCL) has signed a 25-year agreement to take the power at a fixed Rs 3.10 per unit.

The total project cost stands at around Rs 3,900 crore. A financial institution has approved debt funding, subject to conditions.

Transrail will hold 49% at the start, and Onix Renewable Ltd keeps the other 51%. Even so, agreements give Transrail financial and project management control.

It can lift its stake to as much as 100% if both sides agree terms and approvals arrive.

NOPL was set up in April 2024 and has not started operations. It reported no revenue from operations in FY25 or FY26.

Randeep Narang, Transrail’s Managing Director and CEO, called the move a step towards working across the energy chain, from generation to transmission and distribution.

He said projects like this can bring more predictable long-term revenue and margins.

Completion needs government approvals and the lender’s consent. The company expects to finish within 180 days of NOPL’s board approval.

On 14 October, Transrail reported new orders worth Rs 408 crore, lifting this year’s order wins to Rs 2,429 crore.

In September, it raised its conductor-making capacity at the Silvassa plant by 70% to 40,800 km a year.

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