SYNOPSIS: Two penny stocks surged after securing 25-year solar PPAs under PM-KUSUM scheme, boosting growth visibility through long-term revenue contracts, supported by government-backed renewable energy expansion and strong project pipelines.
The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM) scheme has been introduced to reduce dependence on diesel in the agricultural sector while enhancing farmers’ income. Under this initiative, the central government provides a subsidy of up to 30–50 percent of the total cost for installing standalone solar pumps as well as for solarising existing grid-connected agricultural pumps.
In addition, farmers are allowed to set up grid-connected solar power plants of up to 2 MW on barren or fallow land under the scheme. The electricity generated can be sold to local DISCOMs at tariffs determined by the respective state regulators. The implementation of the scheme is carried out by designated departments of state governments.
The PM-KUSUM scheme aims to add a total solar capacity of 34,800 MW by March 2026, supported by central financial assistance of ₹34,422 crore, including service charges for implementing agencies.
The scheme is structured into three key components. Component A focuses on the development of 10,000 MW of decentralised, grid-connected renewable energy power plants. Component B involves the installation of 14 lakh standalone solar agricultural pumps. Component C targets the solarisation of 35 lakh grid-connected agricultural pumps,, including feeder-level solarisation.
PM-KUSUM is one of the world’s largest clean energy initiatives aimed at benefiting over 35 lakh farmers by promoting solar-powered irrigation under Components B and C. The scheme also has significant employment generation potential. According to available estimates, approximately 24.5 job-years are created per MW of small-scale solar installations, which could translate into nearly 7.55 lakh job-years across skilled and unskilled categories.
Following are two stocks that have witnessed a sharp rise of up to 13 percent during Thursday’s trading session, driven by 25-year solar PPAs under the PM-KUSUM scheme from the Madhya Pradesh Government:
Madhav Infra Projects Limited
With a market cap of Rs. 245 crores, the stock surged nearly 4 percent on BSE to hit an intraday high at Rs. 9.45 on Thursday, as against its previous closing price of Rs. 9.09.
As per the latest exchange filings, Madhav Infra Projects Limited has executed 9 Power Purchase Agreements (PPAs) with Madhya Pradesh Power Management Company Limited, a Government of MP Undertaking. These agreements aggregate to a total solar capacity of 73.15 MW and have been awarded under the Feeder-level Solarisation component of the PM-KUSUM (Component C) scheme.
Under the terms of the agreements, the projects will have a tenure of 25 years from the Scheduled Commissioning Date (SCD). The company will generate electricity through solar power projects with a cumulative capacity of 73.15 MW and supply it to MPPMCL at approved tariffs ranging between Rs. 2.71 and Rs. 2.73 per unit over the contract period.
Madhav Infra Projects Limited is engaged in development, construction, as well as operation & maintenance of Infrastructure Projects. It undertakes infrastructure development projects directly or indirectly through Special Purpose Vehicle (SPVs), in terms of the concessional agreements. In addition, the company has a presence in the power generation segment, including solar and hydro energy.
Waa Solar Limited
With a market cap of Rs. 98 crores, the stock surged more than 13 percent on BSE to hit an intraday high at Rs. 74.5 on Thursday, as against its previous closing price of Rs. 65.77. The stock has delivered negative returns of over 11 percent in the last one year, but has gained by around 55 percent in just one month.
As per the latest exchange filings, Waa Solar Limited has executed 7 Power Purchase Agreements (PPAs) with Madhya Pradesh Power Management Company Limited, a Government of MP Undertaking. These agreements cover a total solar capacity of 48.15 MW and have been awarded under the Feeder-Level Solarisation component of the PM-KUSUM (Component C) scheme.
The projects will have a tenure of 25 years from the Scheduled Commissioning Date (SCD). Under these agreements, the company will generate power from solar projects with a cumulative capacity of 48.15 MW and supply it to MPPMCL at approved tariffs ranging between Rs. 2.73 and Rs. 2.75 per unit throughout the project tenure.
Waa Solar Limited, a part of a Madhav Corp., is mainly engaged in the solar power generation by setting up solar power project companies which are engaged in solar power generation activities.
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