Tata Steel Limited Eyes 26% Stake in Tata Power Arm

Steelmaking firm Tata Steel Limited (TSL) has joined hands with Tata Power Renewable Energy Limited (TPREL) and TP Vardhaman Surya Ltd. (TPVSL). Under this agreement, TSL seeks to acquire 26% in TPVSL, currently a wholly owned subsidiary of TPREL.

As per the agreement, TSL will also execute a fixed-tariff long-term agreement with TPVSL to source 379 MW of captive renewable power. This will help to save 50 million tons of carbon emissions over the contract period of 25 years.

TPVSL will establish a 966 MW solar-wind hybrid renewable power facility, which claims to be among the largest industrial power projects in the group captive sector in India. This arrangement will replace a part of the existing coal-based power generation at Tata Steel Jamshedpur. The project would also help to meet to the demands at Tata Steel Kalinganagar and the Electric Arc Furnace project at Ludhiana, Punjab.  

T.V. Narendran, Chief Executive Officer and Managing Director, Tata Steel, stated, “Our partnership with Tata Power Renewable Energy marks a pivotal step in Tata Steel’s sustainability journey towards achieving Net Zero carbon emissions by 2045. We stay committed to reducing our environment footprint and transitioning towards clean, green energy solutions, thus enabling a better tomorrow.”

Dr. Praveer Sinha, CEO & MD, Tata Power, renarked, “Tata Power is happy to develop this round-the-clock hybrid renewable power plant for Tata Steel. It is one of the largest industrial group captive plants in the country and will contribute towards meeting their clean energy goals by significantly reducing the carbon emissions.”

Tata Power has been accelerating its portfolio in the captive power segment, especially in Maharashtra and Ahmedabad.

Earlier this year, Tata Power Renewable Energy Limited (TPREL) signed an agreement with Dugar Power Private Limited (Dugar Power), a subsidiary of Dugar Group- a prominent business house in Nepal. The agreement is designed to cater to Nepal’s diverse energy requirements, offering scalable solutions from 1 KW to MW levels. The partnership is set to deploy solar technologies to produce a range of on and off-grid energy solutions.