Hyundai Motor India Ltd (HMIL) will set up two renewable energy plants at its automobile manufacturing unit in Tamil Nadu. Hyundai Motor India on Thursday said this is in line with the company’s policy to use 100 per cent renewable energy in manufacturing operations by 2025.

Yesterday, Hyundai said in a statement that the company has signed a power purchase and shareholder agreement with Fourth Partner Energy Ltd (FPEL) to set up a 75 MW solar plant and a 43 MW wind power plant to meet its renewable energy needs.

FPEL to Hold Majority Stake in Renewable Energy Project

FPEL will hold a 74% equity stake in the renewable energy project, while Hyundai Motor India will own 26%. The facilities will be operated for the group’s own use, with a special purpose vehicle (SPV) created for engineering, procurement, construction, operation, and maintenance. This long-term deal will secure the supply of renewable energy to Hyundai Motor India for the next 25 years.

Hyundai Motor India to Invest Rs 38 Crore

Hyundai Motor India will invest Rs 38 crore in setting up renewable energy plants in Tamil Nadu under this partnership. Gopalakrishnan Chatpuram Sivaramakrishnan, Whole Time Director and Chief Manufacturing Officer at Hyundai Motor India, said, “This partnership is an important milestone in our journey and reinforces our commitment to the environment. Our collaboration with FPEL will help us achieve the RE 100 benchmark by 2025.”

Hyundai Motor India Shares Fall

On Thursday, Hyundai Motor India shares dropped by Rs 3.05 (0.17%), closing at Rs 1826.00. On Friday, the shares opened lower at Rs 1793.25. The company’s shares reached a 52-week high of Rs 1968.80 and a low of Rs 1688.25. According to BSE data, Hyundai Motor India’s current market cap stands at Rs 1,48,370.00 crore.

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