Primegold Steel & Power to Set Up 20 MW Solar Project in Tamil Nadu for Green Steel Production

Primegold Steel & Power (formerly Primegold International) has announced plans to establish a 20 MW solar project in Tamil Nadu as part of its strategic shift toward sustainable steel manufacturing. The renewable energy initiative, located in Ariyalur district, represents a significant step in the company’s vision to produce environmentally responsible “green steel” while reducing its carbon footprint and energy costs.

Primegold’s Solar Project Overview: Powering Green Steel Production

The 20 MW solar power plant will be constructed in Ariyalur, Tamil Nadu, strategically positioned to provide clean energy directly to Primegold’s steel manufacturing operations. This captive power arrangement will enable the company to significantly reduce its dependence on conventional grid electricity while lowering operational costs and environmental impact.

The solar project in Tamil Nadu represents one of the larger industrial renewable energy installations in the region and demonstrates the growing trend of steel manufacturers embracing sustainable energy solutions. By generating clean power on-site, Primegold aims to reduce the carbon intensity of its steel production processes while maintaining quality and competitive pricing.

Strategic Rebranding for Green Steel Production

In a significant corporate development, Primegold International has officially rechristened itself as Primegold Steel & Power, reflecting its expanded focus on both steel manufacturing and sustainable energy production. This rebranding aligns with the company’s strategic vision to position itself as a leader in environmentally responsible steel production in India.

The name change signals the company’s intention to integrate power generation—particularly from renewable sources—as a core component of its business model rather than merely an operational necessity. This vertical integration strategy allows Primegold to better control its energy costs while advancing its sustainability goals.

Funding and Project Timeline for Tamil Nadu Solar Plant

Primegold Steel & Power has secured ₹65 crore (approximately $7.8 million) in financial backing from the Indian Renewable Energy Development Agency (IREDA) for the solar project. IREDA, a government-backed non-banking financial institution, specializes in financing renewable energy projects and has been instrumental in supporting India’s clean energy transition.

The company has already acquired the necessary land in Ariyalur for the installation, completing a critical preliminary step in the project’s development. Construction work is scheduled to begin in April 2025, with commissioning expected within 10-12 months of groundbreaking.

Expanding Renewable Energy Portfolio Beyond Solar

The 20 MW solar project in Tamil Nadu builds upon Primegold’s existing investments in clean energy. The company already has an established presence in the wind power sector, though details about the capacity and location of these assets have not been disclosed. This diversified approach to renewable energy helps the company balance seasonal variations in generation while maximizing overall green energy production.

Complementing its direct investments in renewable assets, Primegold has secured long-term renewable energy contracts to ensure a stable and predictable supply of clean power. These power purchase agreements provide additional environmental benefits while offering financial predictability for operational planning.

Business Growth and Strategic Integration

Primegold Steel & Power has demonstrated remarkable business growth in recent years, with turnover increasing to ₹800 crore in the last fiscal year from ₹280 crore in FY20. This impressive 186% revenue growth over five years highlights the company’s successful expansion strategy and effective market positioning.

A key factor in this growth has been Primegold’s strategic backward integration initiative launched in 2020, which included the commissioning of a steel melting furnace. This vertical integration has allowed the company to capture more value in the steel production chain while improving quality control and reducing dependency on external suppliers.

Additionally, the company has diversified into the warehousing sector, creating new revenue streams while supporting its core steel business. Notably, these expansions were funded through internal accruals, demonstrating the company’s financial health and capacity to generate sufficient cash flow to support significant investments without excessive reliance on external debt.

Leadership Vision for Sustainable Steel Production

Achin Aggarwal, Managing Director of Primegold Steel & Power, describes the company’s expansion into renewable energy as a “natural evolution.” This perspective emphasizes the strategic alignment between energy sustainability and the company’s core business objectives rather than treating green initiatives as separate corporate social responsibility projects.

“Our aim is to produce steel that is not only of the highest quality but also environmentally responsible, contributing to a greener future for all,” stated Aggarwal, articulating a vision that integrates product quality, business performance, and environmental stewardship.

Impact on Indian Steel Industry and Sustainability Trends

Primegold’s solar project in Tamil Nadu represents a noteworthy development in India’s steel sector, which has traditionally been among the country’s most energy-intensive and carbon-emitting industries. As both domestic and international pressure mounts for industrial decarbonization, initiatives like Primegold’s renewable energy investments may serve as important proof-of-concept for the broader industry.

The steel industry’s transition to cleaner production methods is particularly significant for India’s climate commitments, as the sector contributes approximately 12% of the country’s CO₂ emissions. By demonstrating the technical and economic viability of integrating large-scale renewable energy into steel production, Primegold Steel & Power is contributing to an important shift in industry practices.

As more Indian steel manufacturers adopt similar approaches, the cumulative impact on emissions reduction could be substantial, helping the nation progress toward its goal of achieving net-zero emissions by 2070 while maintaining industrial growth and economic development.

The 20 MW solar power plant represents not just an isolated project but a component of India’s broader energy transition, where industrial consumers are increasingly becoming producers of clean energy as well. This distributed generation model offers significant benefits for grid stability and energy security while advancing environmental objectives.