Maharashtra to Achieve 100% Solar-Powered Irrigation by 2026, Alpex Solar Wins ₹45 Cr MSEDCL Contract

Alpex Solar secured a ₹45 crore contract from MSEDCL to supply 2,000 solar water pumps, boosting its stock price. Maharashtra aims to transition all agricultural pumps to solar energy by 2026 under MSKVY 2.0, reducing industrial power costs. MSEDCL plans to add 45,000 MW capacity, enhancing sustainability and economic growth.

 

CONTENTS:

• Alpex Solar Secures ₹45 Cr Order from MSEDCL for 2,000 Solar Water Pumps
• Maharashtra to Become India’s First State to Achieve 100% Green Energy for Irrigation by 2026

Maharashtra to Achieve 100% Solar-Powered Irrigation by 2026, Alpex Solar Wins ₹45 Cr MSEDCL Contract

Alpex Solar Secures ₹45 Cr Order from MSEDCL for 2,000 Solar Water Pumps

Alpex Solar Limited, a leading manufacturer of photovoltaic (PV) modules and solar energy solutions, saw its stock rise by 2% after winning a ₹45 crore contract from Maharashtra State Electricity Distribution Company Limited (MSEDCL). The order is part of the Magel Tyala Saur Krushi Pump scheme, aimed at deploying solar-powered water pumps in agricultural areas.

 

Stock Performance

With a market capitalization of ₹1,503.89 crores, Alpex Solar’s shares climbed to an intraday high of ₹634, reflecting a 1.81% increase from the previous day’s closing price of ₹622.75. However, the stock later declined to ₹614.50 per share.

 

Project Details

The contract involves the design, manufacturing, supply, transportation, installation, testing, and commissioning of 2,000 off-grid DC solar PV water pumping systems, with capacities of 3 HP, 5 HP, and 7.5 HP. The project must be completed within 60 days from the issuance of the work order, highlighting Alpex Solar’s efficiency in executing large-scale renewable energy projects.

 

Expansion Plans

Alpex Solar is aggressively expanding its operations in the solar sector. Key initiatives include:

• Solar Module Expansion: Increasing production capacity to 2.4 GW in two phases—1.2 GW in Greater Noida by FY25 and an additional 1.2 GW in Kosi Kotwan.
• Solar Cell Manufacturing: Establishing a 1.6 GW solar cell plant in Kosi Kotwan, with an investment of ₹642 crore. The facility will be developed in three phases and is expected to be operational by September 2026.
• Aluminum Frame Production: Expanding output by 12,000 tons.
• EPC Services & Power Generation: Scaling up EPC capacity to 150 MW and power generation capacity to 100 MW by FY27.

 

Company Overview

Alpex Solar is a leading PV module manufacturer in North India, employing 375 professionals, including industry experts. Currently, the company has an annual production capacity of 900 MW and has installed over 15,000 solar pumps. All revenue is generated from domestic sales as of FY24.

 

Financial Performance

Alpex Solar reported strong financial growth in Q3 FY25:

• Revenue: Increased by 137.97%, from ₹79 crore in Q3 FY24 to ₹188 crore.
• Net Profit: Surged by 380%, from ₹5 crore in Q3 FY24 to ₹24 crore.

 

Maharashtra to Become India’s First State to Achieve 100% Green Energy for Irrigation by 2026

The Maharashtra State Electricity Distribution Company Ltd (MSEDCL) has unveiled a comprehensive plan to transition agricultural pumps entirely to solar energy by March 2026. This initiative aims to alleviate the financial strain on industrial consumers, who currently bear the burden of cross-subsidizing power costs for farmers. The shift is also expected to enhance Maharashtra’s industrial competitiveness compared to states like Gujarat, Karnataka, and Tamil Nadu, as reported by the Hindustan Times (HT).

 

Key Highlights of the Solar Initiative

Under the Mukhyamantri Saur Krishi Vahini Yojana (MSKVY 2.0), MSEDCL has awarded contracts for generating 16,000 MW of solar power, positioning Maharashtra as the first state in India to achieve 100% green energy for agricultural irrigation.

MSEDCL Managing Director Lokesh Chandra confirmed that the company has submitted a revised tariff proposal to the Maharashtra State Electricity Regulatory Commission. However, due to past cost adjustments, power tariffs for certain consumers, including residential users, may rise from April 2025. Despite this, Chandra assured that with affordable solar energy projects in progress, electricity rates will gradually decline over the next five years.

 

Current Challenges and Financial Impact

Maharashtra has 4.74 million agricultural pump consumers, with outstanding electricity bill arrears totaling ₹65,565 crore. To support farmers, the state government provides an annual subsidy of ₹6,900 crore, while industrial consumers currently pay ₹9.45 per unit due to cross-subsidization.

MSEDCL accounts for 30% of India’s total agricultural electricity demand, consuming 40,000 million units annually. Supplying power at concessional rates imposes a yearly burden of ₹13,500 crore on industrial consumers. The transition to solar energy under MSKVY 2.0 is expected to reduce this financial pressure immediately.

 

Projected Benefits of Solar Power Integration

• Lower Electricity Costs – Solar power will be procured at rates between ₹2.69 and ₹3.10 per unit, significantly cheaper than current rates.
• Reduced Industrial Tariffs – Industrial power rates are expected to drop from ₹9.45 per unit to ₹9.14 per unit over the next five years. Without this transition, tariffs could have surged to ₹14.67 per unit.
• Decentralized Power Generation – This will help reduce transmission and distribution expenses for MSEDCL.

 

Future Expansion Plans

To support Maharashtra’s ambition of becoming a trillion-dollar economy, MSEDCL aims to increase power capacity by 45,000 MW over the next five years, the largest expansion since Maharashtra’s formation in 1960.

Additionally, investments in the power sector will include:

• ₹65,000 crore for distribution network enhancement
• ₹3.5 lakh crore for transmission infrastructure improvements
• Creation of approximately 700,000 new jobs

With this ambitious solar power initiative, Maharashtra is set to lead India’s green energy transformation, ensuring sustainable and cost-effective electricity for agricultural irrigation while boosting industrial growth.