Primo Chemicals Limited announced that its Board of Directors, in a meeting held on January 16, 2026, approved an investment to subscribe to 26% of the equity capital in a Special Purpose Vehicle (SPV). This SPV will be incorporated by M/s Sun Photonics Private Limited and will be responsible for owning and operating a 50 MW Solar Power Plant under a captive mode on an OPEX model. This initiative aligns with the open access and captive power policy under prevailing electricity laws and regulations.

The proposed investment amounts to ₹21 crore in the equity capital of the SPV, to be made in one or more tranches. Upon commissioning, the solar power plant is anticipated to result in cost savings of up to ₹24 crore per annum for Primo Chemicals Limited. The SPV will supply power to Primo Chemicals at a fixed tariff at the injection point.

The SPV will be incorporated with the objective of installing, owning, operating, and maintaining the solar power plant. The incorporation is subject to compliance with the provisions of the Electricity Act, 2003, and other applicable rules and regulations governing captive power generation and open access in Punjab. The company has initiated the necessary process and will submit all required applications within the prescribed timelines. M/s Sun Photonics Private Limited is not a related party to Primo Chemicals Limited.