Tata Power, one of India’s leading power companies, has revealed plans to invest approximately Rs 70,000 crore in the establishment of 10 gigawatts (GW) of solar and wind units in Tamil Nadu. The project is set to unfold over a period of five to seven years, marking a significant leap towards India’s renewable energy goals. The announcement was made by Praveer Sinha, the Chief Executive Officer of Tata Power, during a press briefing at the Tamil Nadu Global Investors Meet (GIM) in Chennai.
Tata Power, an integrated power company in India with a substantial global footprint, incorporates an installed generation capacity of 14,110 MW within the country. The company strategically operates across all segments of the power sector, encompassing Fuel & Logistics, Generation (thermal, hydro, solar, and wind), Transmission, Distribution, and Trading. Tata Power has forged several public-private partnerships in Generation, Transmission, and Distribution. The collaborations initiated by Tata Power include “Tata Power Delhi Distribution Limited,” a partnership with the Delhi Government for power distribution in North Delhi. Additionally, the company has also partnered with Power Grid Corporation of India Ltd. to establish “Powerlinks Transmission Ltd,” facilitating the evacuation of power from the Tala hydro plant in Bhutan to Delhi. Another significant venture is “Maithon Power Ltd,” formed in conjunction with Damodar Valley Corporation, focusing on a 1,050 MW Mega Power Project in Jharkhand.
Tata Power has also pioneered the development of the country’s first 4,000 MW Ultra Mega Power Project at Mundra, Gujarat. The company has further expanded its reach through strategic agreements such as the Distribution Franchisee Agreement (DFA) with Ajmer Vidyut Vitran Nigam Limited (AVVNL). This collaboration led to the creation of a Special Purpose Vehicle (SPV) named “TP Ajmer Distribution Limited” (TPADL), focused on meeting the power requirements of customers in Ajmer over a 20-year period.
The formal declaration of the installation of the solar and wind units in Tamil Nadu is scheduled for the upcoming day, with the signing of a memorandum of understanding between Tata Power and the state government of Tamil Nadu. This pivotal move underscores Tata Power’s commitment to sustainable energy practices and aligns with India’s broader mission to enhance its renewable energy capacity. Praveer Sinha, CEO, Tata Power, had explained the comprehensive nature of the investment, stating, “As part of GIM, we are looking at investing Rs 70,000 crore. This will happen over a period of time of five to seven years. We are going to set up a 10 GW solar and wind project in Tamil Nadu.” The significant scale of the project reflects Tata Power’s strategic vision to contribute substantially to India’s renewable energy landscape.
However, Mr Sinha has also clarified that a portion of the mentioned investment, approximately Rs 15,000 crore, has already been earmarked for operational and under-construction projects in south and central Tamil Nadu. Consequently, the net infusion of new investments into this ambitious venture amounts to around Rs 55,000 crore, highlighting the substantial commitment towards future sustainability initiatives.
This renewable energy project is anticipated to play a crucial role in Tamil Nadu’s energy transition, contributing to the state’s renewable energy capacity and fostering sustainable development. Tata Power’s investment aligns with the national objectives outlined in India’s ambitious renewable energy targets, emphasizing the pivotal role of private enterprises in driving such initiatives. The proposed 10 GW solar and wind project signifies a leap forward in India’s renewable energy sector, offering a considerable boost to the country’s clean energy capacity. The memorandum of understanding, expected to be signed imminently, will solidify the partnership between Tata Power and the Tamil Nadu government. This collaborative effort is expected to unlock new avenues for renewable energy generation, employment opportunities, and economic growth in the region.