Textile company Sangam India has awarded an engineering, procurement, and construction (EPC) contract to IB Vogt Solar India to set up a 27 MW solar power project in Sangarh Village, Jaisalmer district, Rajasthan.

The project, which allows a ±5% variation in installed capacity, is intended to increase the company’s captive renewable energy consumption and lower power costs. The arrangement is designed to ensure that the generated power is absorbed within Sangam India’s operations in Rajasthan.

The EPC contract with IB Vogt Solar India covers the complete lifecycle of the solar project, including design, engineering, procurement, construction, and commissioning, although the company has not provided additional details on specific terms, rights, or financial commitments under the agreement.

The disclosure clarifies that there is no shareholding in the entity with whom the agreement is executed, that the parties are not related to the promoter or the promoter group, and that the transaction does not fall within the purview of related party transactions.

The disclosure also specifies that the agreement does not involve the issuance of shares, loan arrangements, or security agreements, and no other disclosures, such as board nominees or potential conflicts of interest, are applicable.

Ib Vogt is a Germany-based integrated large-scale solar developer with operations in India.

Sangam currently sources renewable power from three rooftop solar projects totaling 17 MW and a 5 MW wind project. These initiatives support the company’s long-term strategy to increase renewable energy use and reduce its operational carbon footprint. The company also owns two thermal power projects with a combined capacity of 16 MW.

The company also plans to deploy smart energy management systems with real-time monitoring to optimize consumption, improve load management, and support data-driven energy planning. It has already implemented multiple energy- and emissions-reduction measures, including biomass-based cogeneration plants, and solar-powered streetlights.

For the financial year (FY) 2024-25, the company reported total electricity consumption of 29,43,223 gigajoules, of which 166,379 was from renewable sources (5.65%). In the previous financial year, the total electricity consumption was 33,19,618 gigajoules, of which 2.19% (72,618 gigajoules) was from renewables.

The company reported an energy intensity per rupee of turnover adjusted for purchasing power parity (which measures the energy consumption intensity of a company relative to its revenue, reflecting the efficiency and effectiveness of its energy management practices) of 0.00251996 in FY24, reduced to 0.00213883 in FY25.

In October this year, Sangam India announced that it will procure renewable energy from CGE II Hybrid Energy, a special purpose vehicle of Continuum Green Energy, under the captive mode to power its manufacturing units in Rajasthan. The company aimed to increase renewable power consumption to 12 MW across its plants in the villages of Atun, Sareri, and Billiya Kalan in the Bhilwara district.