Mahindra and Mahindra will procure power from a 30 MW captive solar power project in Punjab, being developed by Neon Hybren, as part of its plan to secure long-term clean energy for its operations.

The company approved an investment of up to ₹111.7 million (~$1.21 million) and has executed a share subscription and shareholders’ agreement with Neon and its parent, Mahindra Susten.

The transaction will enable Mahindra to procure electricity generated by the grid-connected, ground-mounted solar project on a captive basis.

This move aligns with the company’s broader renewable energy strategy, which includes targets of achieving 100% renewable energy use by 2030 and carbon neutrality for Scope 1 and Scope 2 emissions by 2040.

Neon Hybren is currently a wholly owned subsidiary of Mahindra Susten, which is a subsidiary of Mahindra Holdings, a wholly owned arm of Mahindra and Mahindra.

Following the equity allotment, Mahindra Susten’s shareholding in Neon will be diluted from 100% to 74%, with Mahindra & Mahindra holding the remaining 26%. Despite this dilution, Neon will continue to remain a step-down subsidiary of the company.

Neon operates in the renewable energy sector as an independent power producer engaged in power generation and electricity sales, as well as distributed energy solutions, including rooftop solar and energy storage.

Through Mahindra Susten, the group has already developed approximately 1.5 GW of renewable energy capacity and plans to scale this up to 7 GW by 2030.

The company has outlined an investment plan of ₹210 billion (~$2.27 billion) to build an additional 5.5 GW renewable portfolio over the next five years, spanning solar, wind, hybrid energy, energy storage, and green hydrogen projects.

Recently, Mahindra Susten achieved financial closure for NHPC’s 300 MW renewable energy project in Rajasthan. The project, developed by Hazel Hybren, a wholly owned subsidiary, secured ₹10.25 billion (~$111.32 million) in financing from HDFC Bank.

In December 2025, Mahindra and Mahindra announced that it would procure power from a 150 MW hybrid renewable energy project in Maharashtra comprising 100.8 MW of wind and 50 MW of solar capacity, which is being developed by Gelos Solren.