Tata Power Gets $425-Million Financing From U.S. DFC For Solar Manufacturing Plant

The U.S International Development Finance Corp.'s board of directors has approved the provision of up to $425 million or Rs 3,523.4 crore in financing for Tata Power Renewable Energy Ltd.'s greenfield 4.3-gigawatt solar cell and module manufacturing plant.

The first-module production of the plant in Tamil Nadu's Tirunelveli district is expected by the end of the year, according to an exchange filing on Monday.

This financing in TP Solar Ltd, a subsidiary of Tata Power, 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", it said.

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.

"We appreciate DFC's assistance for our solar cell and module production facility in Tamil Nadu," Chief Executive Officer Praveer Sinha 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," Sinha said.

About The Order

The Tirunelveli manufacturing plant will integrate advanced technologies, enabling the production of high-wattage solar modules and cells with industry-leading efficiencies.

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.