Allcargo Terminals Signs Solar Power Purchase Agreement with Amokha Green Energy

Mumbai, India – January 29, 2025​

Allcargo Terminals Limited (NSE: ATL, BSE: 543954) has announced the signing of a Power Purchase Agreement (PPA) with Amokha Green Energy Private Limited (AGEPL) for solar power procurement on a Group Captive basis. The agreement aligns with Allcargo Terminals' commitment to sustainability and cost-efficient energy solutions.

Key Highlights of the Agreement​

• Power Supplier: Amokha Green Energy Private Limited (AGEPL).
• Purpose: Solar power procurement for Allcargo's Container Freight Station (CFS) in Chennai.
• Electricity Commitment: Minimum 80% of 3 lakh units per annum.
• Investment:
  • Allcargo Terminals to invest ₹4,700 in equity shares of AGEPL.
  • 47 equity shares issued at ₹100 each.
• Cost Savings:
  • Lower tariff than Tamil Nadu Generation and Distribution Corporation (TANGEDCO).
  • Reduces energy costs for CFS operations.

✔ The agreement ensures a steady renewable energy supply, reducing operational costs & carbon footprint.

Strategic Impact & Business Growth​

✔ Renewable Energy Expansion:

• Supports green energy adoption in Allcargo's logistics operations.
• Enhances sustainability initiatives & ESG compliance.

✔ Cost-Efficiency & Financial Benefits:

• It is cheaper than conventional grid electricity, improving profitability.
• Long-term cost savings through captive solar procurement.

✔ Minimal Investment, High Returns:

• Nominal ₹4,700 investment in AGEPL equity.
• 26% minimum equity holding for group captive consumer compliance.

✔ No Impact on Management or Control:

• Allcargo Terminals will not have any board representation in AGEPL.
• No related-party transactions or conflicts of interest.

Sustainability & Future Growth Plans​

Allcargo Terminals is actively investing in green logistics solutions, focusing on:
✔ Expanding renewable energy usage across logistics hubs.
✔ Enhancing energy efficiency & reducing carbon footprint.
✔ Integrating solar power into freight & warehousing operations.

Conclusion​

The PPA with Amokha Green Energy marks a significant step in Allcargo Terminals' commitment to sustainability. It ensures cost-effective, clean energy for its logistics operations. With lower electricity costs and strengthened ESG initiatives, the company is well-positioned for long-term growth in sustainable logistics.