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Tata Power to aid stainless steel company operate on solar energy

Tata Power's renewable energy subsidiary will now collaborate with a stainless steel producer to aid the latter's operations via solar energy. Find out more about the contours of the deal here.

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By CNBCTV18.com September 8, 2022, 5:16:21 PM IST (Published)

2 Min Read
Tata Power to aid stainless steel company operate on solar energy
Tata Power Renewable Energy Ltd., a subsidiary of Tata Power
and one of India's largest integrated renewable energy company, will set up a 100 MW captive solar plant for a stainless steel manufacturer.

The company will collaborate with Viraj Profile Pvt. Ltd., a stainless steel producer, to help run its operations on solar energy. Viraj Profile is in the business of manufacturing Stainless Steel Long Products.

Once the project is commissioned in July 2023, it will halve Viraj Profile's dependability on non-renewable power resources. The construction, operation, and maintenance of this captive solar power plant will be done by TP Nanded Ltd., a Special Purpose Vehicle (SPV) created for the same.

Tata Power will own 74 percent of the generation, while Viraj Profile will own the remaining portion as per the captive rules. The power generated in the plant will be used for captive consumption by Viraj Profile's unit in Tarapur.

"This project is another step in TPREL's ongoing efforts to build green and renewable energy solutions throughout India," CEO Ashish Khanna said in an exchange filing.

The deal's first phase will see Viraj Profile get around 100 MW of electricity, and the capacity will increase over the next few years.

Tata Power Renewable has been one of India's leading Solar Rooftop EPC players over the last eight years. It has a portfolio of more than 9.7 GW of ground-mount solar projects and over 1.2 GW of rooftop and distributed generation projects across the country. Tata Power's subsidiary recently raised Rs 2,000 crore through the issue of 8.36 crore equity shares to a company backed by BlackRock.

In April this year, a consortium led by BlackRock Real Assets that also included Mubadala signed a binding agreement with Tata Power to invest Rs 4,000 crore in TPREL, valuing the subsidiary at Rs 34,000 crore.

TPREL also signed an MoU with the Tamil Nadu government in July this year to set up a greenfield 4 GW solar cell and 4 GW solar module manufacturing plant in the Tirunelveli district. The solar plant would require an investment of Rs 3,000 crore, which will be made over 16 months.

Shares of Tata Power ended 0.79 percent lower on Thursday at Rs 245.
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