Business
Tata Power To Get $425 Million From US Govt Agency For Solar Cell And Module Manufacturing Plant In Tamil Nadu
Solar panels (Representative Image) (MONEY SHARMA/AFP/Getty Images)
Tata Power will get over $400 million in financing from a US government agency for its solar cell manufacturing plant in Tamil Nadu.
"The US International Development Finance Corporation’s (DFC) board of directors has approved the provision of up to $425 million in financing in TP Solar Limited, a subsidiary of Tata Power Renewable Energy Limited (TPREL), for its upcoming greenfield 4.3 GW solar cell and module manufacturing plant at Tirunelveli district in Tamil Nadu, India," the company said in a statement on Monday (11 September).
The DFC is America’s development finance institution, which primarily invests in development projects in lower and middle-income countries.
The company said that the solar manufacturing plant’s first module production is expected by the year end and the first cell production is expected in the first quarter of FY24.
"Pending a US congressional notification, this investment will support India’s ambitious program to increase renewable energy manufacturing capability to support domestic solar capacity addition as part of its global green energy transition," the company said.
DFC’s financial support of Tata Power will help secure the supply chain in the country’s journey for leadership in clean energy space, it added.
The financing support came at a time when global leaders were deliberating on energy transition and other critical sustainability challenges at the recently concluded G20 Summit in New Delhi.
This financing support will contribute towards securing India’s commitment to achieve 500 GW of clean energy targets by 2030, the company said.
"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 Praveer Sinha, CEO&MD, Tata Power.
The Tirunelveli manufacturing plant will integrate advanced technologies enabling the production of high wattage solar modules and cells with industry-leading efficiencies.
Additionally, the facility will implement industry 4.0 standards for smart manufacturing.
The plant is expected to create over 2000 employment opportunities directly or indirectly, with the majority of the employees being women employees from the local areas.
The company said that it is committed to expanding its clean and green energy capacity, targeting an increase from 38 per cent to 70 per cent by 2030.
Currently, Tata Power's renewable portfolio stands at around 7.8 GW, with 4.1 GW operational and 3.6 GW under implementation.
The company also has already operating a solar cell and module manufacturing plant of 500 MW capacity each at Bengaluru, it said.
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