The U.S. International Development Finance Corporation’s (DFC) board has approved a provision of up to USD 425 million in financing for Tata Group’s upcoming greenfield 4.3 GW solar cell and module manufacturing plant, in Tirunelveli.
The plant is being constructed by TP Solar Limited, a subsidiary of Tata Power Renewable Energy Limited (TPREL). TPREL is a subsidiary of Tata Power Company Limited
The plant’s first module production is expected by the end of the year, and the first cell production is expected in the first quarter of FY 24, according to a statement. The 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 2,000 employment opportunities directly or indirectly, with the majority of the employees being women employees from the local areas.
Pending a U.S. Congressional notification, this investment will support India’s ambitious programme to increase its renewable energy manufacturing capabilities, to support domestic solar capacity addition, as part of its global green energy transition, the statement said.
The financing support comes at a time when global leaders deliberated on energy transition and other critical sustainability challenges at the recently-concluded G20 Summit held in New Delhi. This financing support will contribute towards securing India’s commitment to achieving 500 GW of clean energy targets by 2030, the statement said.
“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.
Tata Power said it is committed to expanding its clean and green energy capacity, targeting an increase from 38% to 70% by 2030. The company is actively focusing on renewable capacity expansion and transitioning into consumer-oriented businesses.
The company also has a solar cell and module manufacturing plant of 500 MW capacity each, in Bengaluru.
