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Tata Power renewable arm raises $425 million from DFC


TP Solar, a subsidiary of Tata Power Renewable Energy (TPREL), has raised $425 million from US International Development Finance Corporation (DFC)’s board of directors for its upcoming greenfield solar cell and module manufacturing plant in Tamil Nadu. The first module production at the 4.3 GW plant, located in Tirunelveli district, is expected by the year end and the first cell production is expected between April and June 2024.

“Pending a US congressional notification, this investment will support India’s ambitious programme to increase renewable energy manufacturing capability to support domestic solar capacity addition as part of its global green energy transition,” Tata Power said in a statement. “DFC’s financial support of Tata Power will help secure the supply chain in the country’s journey for leadership in the clean energy space.”

DFC partners with private sector players across the globe to finance solutions to the most critical challenges facing the developing world today. The financing support is coming at a time when global leaders deliberated 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.

“DFC’s assistance for our solar cell and module production facility in Tamil Nadu 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, 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 2,000 employment opportunities directly or indirectly, with the majority of the employees being women from local areas.Currently, Tata Power’s renewable portfolio stands at about 7.8 GW, with 4.1 GW operational and 3.6 GW under implementation. The company also has solar cell and module manufacturing plants of 500 MW capacity each at Bengaluru.


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