Tata Power raised $425 million in financing from the US International Development Finance Corporation’s (DFC) board of directors, the company announced in a filing. The board approved the financing of TP Solar Limited, a subsidiary of Tata Power Renewable Energy Limited (TPREL) for its upcoming greenfield plant in Tamil Nadu.
The financing is for TPREL’s upcoming greenfield 4.3 GW solar cell and module manufacturing plant at Tirunelveli district in Tamil Nadu. The plant’s first module production is expected by the year end and the first cell production is expected in the first quarter of FY24.
This investment is expected to support India’s aim to increase renewable manufacturing capability to support domestic solar capacity addition as part of its transition to green energy. India aims to achieve 500 GW of clean energy targets by 2030.
The greenfield plant will integrate advanced technologies that will enable production of high wattage solar modules and cells with industry-leading efficiencies. The plant, the company added, will implement 4.0 standards for smart manufacturing.
The Tirunelveli manufacturing plant is expected to create over 2,000 employment opportunities directly or indirectly, with a focus on women employees from local areas.
The US-based development finance institution’s financing will support Tata Power secure the supply chain in the journey to clean energy space, the company added. This financing also assumes importance in the context of the G20 Summit 2023, held in Delhi on September 9-10. The G20 leaders, among other things, deliberated on energy transition and other critical sustainability challenges.
"We appreciate DFC's assistance for our solar cell and module production facility in Tamil Nadu. It shows the trust and belief DFC has in Tata Power’s ability to set up a state-of-the-art manufacturing supply line in the country. This will go a long way in supporting the renewable and clean energy transition in the country,” said Dr. Praveer Sinha, CEO&MD, Tata Power.
Tata Power is looking to expand its renewable capacity and transition into a consumer-oriented business. The company is already operating a solar cell and module manufacturing plant of 500 MW capacity each at Bengaluru.
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