Vedanta Power Lands Major 500-MW Deal with Tamil Nadu!

Vedanta’s thermal power units, Meenakshi Energy Limited (MEL) and Vedanta Chhattisgarh Thermal Power Plant (VLCTPP), have secured a 500-MW power purchase agreement (PPA) with Tamil Nadu Power Distribution Corporation (TNPDCL).

The PPA, effective 1 February 2026 through 31 January 2031, allocates 300 MW to MEL and 200 MW to VLCTPP at a tariff of Rs 5.38 per kWh, representing a significant portion of TNPDCL’s 1,580 MW tender. Rajinder Singh Ahuja, CEO of Vedanta Power, emphasized the strategic importance of reliable base-load power for India’s energy security. The agreement enhances revenue visibility and strengthens Vedanta Power’s financial position, supporting future growth initiatives, including a proposed demerger of the company’s power assets.

In 2023, Vedanta acquired Meenakshi Energy, a 1,000-MW thermal plant in Tirupati, Andhra Pradesh, and successfully restored it to full operational capacity within two years. Likewise, the 1,200-MW VLCTPP in Singhi Tarai, Chhattisgarh, formerly Athena Chhattisgarh Power, was acquired in 2022 as a partially completed project, with the first 600 MW unit commissioned by August 2025.

News by Rahul Yelligetti.