GFCL Approves Slump Sale of Power Undertaking and Strategic Renewable Investments

In a move towards restructuring and enhancing its energy portfolio, Gujarat Fluorochemicals Ltd. (GFCL) has announced key resolutions from its Board meeting held on 26th December 2024. The decisions made during the meeting are set to streamline its operations and accelerate its focus on renewable energy investments.

The Board has approved the slump sale of GFCL’s 57 MW captive power plant to IGREL Mahidad Ltd., a wholly owned subsidiary of the company, for a total consideration of INR 200 crore. The sale is expected to be completed by 31st March 2025, or another mutually agreed date, pending customary closing approvals.

As part of its ongoing strategy to strengthen its presence in the energy sector, GFCL has also approved an investment of up to INR 40 crore in IGREL Mahidad Ltd. This investment will be made in one or more tranches through the subscription of equity shares in the subsidiary, reinforcing the company’s commitment to its renewable energy initiatives.

In another strategic move, the Board has approved an investment of up to INR 200 crore in Flurry Wind Energy Pvt. Ltd., a renewable energy player. This investment will secure a 26 percent equity stake in Flurry Wind Energy, further expanding GFCL’s footprint in the wind energy sector and enhancing its renewable energy portfolio.

GFCL has also secured long-term power purchase agreements (PPAs) with both IGREL Mahidad Limited and Flurry Wind Energy Pvt. Ltd. to meet its plant power requirements. The company will purchase up to 107 MW of power from IGREL Mahidad Ltd. and up to 350 MW from Flurry Wind Energy, both at the rate of INR 4 per unit. These agreements will ensure a stable and cost-effective power supply to support GFCL’s operations.

These resolutions are part of GFCL’s strategy to transition towards more sustainable energy sources, with a strong focus on renewable energy investments and strategic partnerships in the energy sector.