Talwandi Sabo Power Launches 500-Ton-Per-Day Biomass Facility in Punjab

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Image Courtesy: Talwandi Sabo Power Limited

Talwandi Sabo Power Limited (TSPL), part of Vedanta Power, has commissioned a new biomass processing plant with a capacity of 500 tonnes per day in Mansa, Punjab. The facility is designed to gradually increase output to meet TSPL’s growing demand for biomass fuel. The plant will process agricultural residue—primarily stubble—into carbon-neutral bio-pellets, which will be used to reduce coal consumption at TSPL’s thermal power station.

According to Vedanta Power, the biomass unit offers an eco-friendly fuel option that helps cut emissions while repurposing crop waste. The company noted that the initiative will contribute to both cleaner energy production and improved air quality in the region.

Financial specifics of the project were not disclosed.

TSPL has already procured over 800,000 tonnes of agricultural stubble from recent paddy harvests. This raw material will yield approximately 640,000 tonnes of torrefied bio-pellets through the new plant. These pellets will partially replace coal in daily operations, leading to a 5% reduction in coal usage.

In addition to the new facility, TSPL is also sourcing around 450 tonnes of torrefied biomass daily from third-party vendors. This biomass is produced through a thermochemical process that enhances its energy content and stability, making it suitable for co-firing in thermal plants.

Punjab generates an estimated 15–20 million tonnes of crop stubble each year, much of which is traditionally burned, contributing to severe air pollution across North India.

Rajinder Singh Ahuja, CEO of Vedanta Power, emphasized the company’s broader environmental goals:
“As one of India’s key private power producers, we remain committed to supporting the country’s clean energy transition. Despite early challenges around infrastructure and supply chains, our push toward greener alternatives continues. This project is a step forward in addressing stubble burning and advancing sustainable energy.”

TSPL plans to expand its use of biomass as a fuel source, reinforcing its commitment to reducing the environmental impact of thermal power generation. Talwandi Sabo Power Limited (TSPL) was established as a Special Purpose Vehicle (SPV) by the Punjab State Electricity Board (PSEB) to develop a 1980 MW (3×660 MW) thermal power plant at Banawala village, along the Mansa–Talwandi Sabo Road in Punjab’s Mansa district.

The project was awarded to Sterlite Energy Limited, part of the Vedanta Group, through a Tariff-Based Competitive Bidding Process (Case-2) under a Build, Own, Operate (BOO) model. As per the agreement, the entire power output will be supplied to PSEB for a period of 25 years. The Power Purchase Agreement and related contracts were signed on September 1, 2008, on which date ownership of TSPL was transferred to Sterlite Energy Limited, now known as Vedanta Limited.

Vedanta Resources plc, listed on the London Stock Exchange as part of the FTSE 100 index, is a global diversified natural resources company with revenues exceeding USD 12.9 billion. Its portfolio includes the production of aluminium, copper, zinc, lead, iron ore, and commercial power. The group operates across India, Zambia, and Australia, supported by a global workforce of over 87,000 people—including more than 25,000 direct employees and 59,500 contract personnel. Vedanta is committed to sustainable growth and stakeholder engagement, guided by its core values of entrepreneurship, excellence, trust, inclusiveness, and development.