Choice Consultancy Services wins Rs 700cr solar deal in Maharashtra to power green energy push for farmers

In a significant milestone for India’s renewable energy sector, Choice Consultancy Services Private Limited (CCSPL), a wholly owned subsidiary of Choice International Limited, has secured a ₹700 crore mandate from the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) to develop a 45 MW (AC) solar power plant. This project falls under the state’s broader renewable energy programme known as the Mukhyamantri Saur Krushi Vahini Yojana 2.0, aligned with Component C of the national PM-KUSUM scheme. It signals a strategic leap not only for the firm but for the decentralisation of solar energy in India.

The solar plant will be structured across 18 substations in Maharashtra and will cater primarily to agricultural feeders—electrical lines dedicated to irrigation purposes in rural areas. The objective is to reduce dependence on conventional electricity sources and diesel-powered irrigation pumps by introducing sustainable, solar-based alternatives. Through this assignment, CCSPL will provide comprehensive consulting services, covering project structuring, compliance management, and end-to-end execution support. The firm will also supervise the installation of 11kV or 22kV distribution lines and ensure successful commissioning of the project infrastructure.

With a 25-year Power Purchase Agreement (PPA) baked into the plan, this decentralised solar initiative is expected to deliver stable returns while transforming the energy landscape for rural communities in Maharashtra. The anticipated ₹700 crore revenue from this single project marks it as one of CCSPL’s most impactful contracts in the renewable space.

What does this mean for the Mukhyamantri Saur Krushi Vahini Yojana 2.0?

The Mukhyamantri Saur Krushi Vahini Yojana 2.0 (MSKVY 2.0), launched under the broader umbrella of the PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme, is designed to empower rural Maharashtra through solar energy. Specifically, Component C of PM-KUSUM supports feeder-level solarisation, enabling states to install decentralised solar plants near substations to power agricultural electricity demand locally. This reduces transmission losses, improves power quality, and enhances rural energy security.

Maharashtra, with its agrarian backbone and wide geographical reach, has emerged as a focal point for such decentralised energy efforts. The MSKVY 2.0 is especially targeted at enabling farmers to access reliable, affordable, and sustainable power. With CCSPL’s involvement, the project will benefit from experienced guidance in public-sector engagement and compliance-intensive project management.

By facilitating solarisation at the feeder level, the state government aims to cut down on fossil fuel dependence while simultaneously lowering the power subsidy burden. The long-term environmental and economic gains are anticipated to ripple through rural communities, making solar a practical solution rather than a policy aspiration.

Why is this project significant for Choice International’s consultancy business?

The solar mandate underscores CCSPL’s evolution into a high-impact consultancy in the green infrastructure domain. Historically focused on public-sector advisory, revenue augmentation strategies, and process automation, the firm has gradually broadened its scope into clean energy consulting. This 45MW solar plant engagement with MSEDCL demonstrates its ability to handle large-scale renewable energy assignments, integrating both strategic planning and technical oversight.

The project also positions CCSPL among the rising class of Indian consultancies specialising in the execution of state and central renewable mandates. While solar development has traditionally been dominated by engineering, procurement, and construction (EPC) players, the growing complexity of regulatory compliance, risk allocation, and stakeholder coordination has opened the door for consulting firms to take a lead role. Choice Consultancy Services is tapping into this evolving niche by offering full-spectrum advisory services that span from policy alignment to ground-level implementation.

From a business perspective, the ₹700 crore expected revenue inflow represents a substantial addition to the consultancy’s project pipeline and reaffirms investor and stakeholder confidence in its execution capabilities. According to statements from the leadership of Choice International, the mandate reflects the company’s broader vision to be a key enabler in India’s green transition, with a firm footing in both strategy and sustainability.

How does this project support India’s energy transition?

India’s renewable energy ambitions have gained momentum over the past decade, with solar power taking centre stage. Government programmes such as PM-KUSUM have been designed to decentralise renewable energy production, particularly in rural and agricultural areas that are traditionally underserved by conventional electricity grids. The emphasis on feeder-level solarisation, as seen in Maharashtra’s MSKVY 2.0 initiative, plays a crucial role in addressing the dual challenge of energy access and carbon emissions.

By supporting the installation of distributed solar systems across substations, the project not only reduces grid dependency but also paves the way for future-ready infrastructure that aligns with climate goals. The involvement of consulting firms like CCSPL ensures that execution is compliant with policy, technically sound, and socially inclusive.

Furthermore, the long-term 25-year PPA ensures project bankability and offers a predictable revenue stream, which is critical for attracting investor interest and scaling solar deployments across India. For CCSPL, this framework represents a strong growth lever as it continues to expand its footprint in infrastructure consulting, especially in sectors aligned with climate action and rural development.

What is the investment sentiment around Choice International’s stock?

The financial market’s sentiment toward Choice International Limited reflects cautious optimism, supported by strong operational momentum and ambitious renewable energy mandates. As of April 11, 2025, the company’s stock (NSE: CHOICEIN) is trading at ₹504.70, marking an impressive year-on-year growth of approximately 69%. This surge reflects growing investor confidence, particularly in the company’s ability to capitalise on sustainability-driven public sector contracts like the 45MW solar project in Maharashtra.

However, valuation metrics suggest a note of caution. With a Price-to-Earnings (P/E) ratio of 67.82 and a Price-to-Book (P/B) ratio of 11.47, the stock is currently trading at a premium relative to the broader industry. These elevated multiples point toward limited near-term upside unless supported by consistently strong earnings and future project wins. On the profitability side, the company maintains a Return on Equity (ROE) of 19.54% and an Operating Margin of 28.49%, indicating healthy financial performance.

Foreign Institutional Investors (FIIs) increased their holdings to 13.70% in the December 2024 quarter, up from 12.72%, reflecting rising foreign interest. Promoter holdings remain steady at 58.21%, although 13.84% of shares are pledged—potentially raising questions about financial leverage.

For current shareholders, the recommendation leans toward a Hold, particularly if the company’s project execution remains on track and the solar sector continues to attract state-level policy attention. For prospective investors, waiting for a valuation correction could offer a more favourable entry point, especially if future earnings align more closely with current pricing.

Overall, the project win adds credibility to the company’s green energy strategy and further strengthens its long-term investment thesis, particularly for those betting on India’s energy transition and rural electrification roadmap.