Japan's Chubu Electric Enters into Indian Market by Investing in OMC Power

Marking its first-ever investment in the country, Japanese utility major Chubu Electric has entered the Indian market by signing a Share Subscription Agreement with Gurgaon-headquartered OMC Power, a rural utility company.
 
As per the deal, the company will support OMC Power’s expansion of green energy production, storage, and distribution portfolio in rural areas of the country.
 
“We will contribute to OMC’s efficient business operations by leveraging our operation and maintenance skills for power transmission, distribution, and improvement of the efficiency of generation facilities, and will also contribute to a decarbonized society and the well-being of local people through a clean power supply,” said Hiroki Sato, Senior Managing Executive Officer and Division CEO of Global Business Division at Chubu.
 
Currently, OMC Power has set up 280 renewable energy plants across rural Uttar Pradesh and Bihar, which has resulted in enhancing the socio-economic status of over 100,000 consumers in all segments in these villages.
 
Through this partnership, OMC Power is planning to scale up its renewable energy portfolio in rural India by up to 5,000 new villages with its inclusive and sustainable ABC (Anchor, Business and Communities) business model.
 
Commenting on the partnership with Chubu Electric, Rohit Chandra, CEO of OMC Power, “we are excited to welcome Chubu Electric as OMC Power’s new partner and are looking forward to a long-term collaborative working with cross-learnings to improve OMC’s energy generation, storage and distribution portfolio. This will go a long way towards our commitment of improving the social, economic, and environmental landscape of rural India. The collaboration with Chubu aligns with OMC’s plans of scaling its rural utility business to newer geographies and towards faster decarbonization. OMC Power’s expertise in distributed energy following the ABC model coupled with the comprehensive know-how of the energy industry of Chubu will help in the development of sustainable, rural utility infrastructure.”

Moreover, this partnership will boost the rural economy, improving access to green and clean energy for telecom towers, small and medium enterprises and households in rural India and drastically reduce the use of fossil fuels, OMC Power said in a statement.