Tata Power secures USD 425 million financing for cutting-edge greenfield plant

Today Tata Power has reported to the exchanges that USA International Development Finance Corporation’s (DFC) Board of Directors approved the provision of up to USD 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.

DFC is America’s development finance institution. Tata Power Renewable Energy Limited is a subsidiary of Tata Power, one of India’s largest integrated power companies. 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 would boost India’s ambitious goal to enhance renewable energy manufacturing capacity to support domestic solar capacity expansion as part of its global green energy transition. Tata Power’s financial backing from DFC will help safeguard the supply chain as the nation strives to lead the world in renewable energy. DFC collaborates with global private sector actors to finance solutions to the most pressing problems now plaguing the developing world. During the recently finished G20 Summit in New Delhi, world leaders were discussing the energy transition and other crucial sustainability concerns. At that time, financial help was provided. This financial assistance will help India fulfil its aim to generate 500 GW of sustainable energy by 2030.

In the last trading session, the scrip closed at Rs 268.90 and today shares of the company ended at Rs 271.80, up by 1.08%. The company’s 52-week high stands at Rs 276.50 and 52-week low is Rs 182.45, with a current market capitalization of around Rs 86,850 crore.

Tata Power is one of India’s largest integrated power companies and together with its subsidiaries and jointly controlled entities es, has an installed/managed capacity of 14,339 MW. The Company has a presence across the entire power value chain – generation of renewable as well as conventional power including hydro and thermal energy, transmission & distribution, and trading.

Tata Power 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 a consumer-oriented business. Currently, Tata Power’s renewable portfolio stands at approx. 7.8 GW, with 4.1 GW operational and 3.6 GW under implementation. The company also has already operated a solar cell and module manufacturing plant of 500 MW capacity, each at Bengaluru.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.