Vedanta Signs Pact with Tamil Nadu DISCOM for Power Supply

• Vedanta signs a 5-year deal with TNPDCL to supply 500 MW at Rs 5.38/kWh
• Meenakshi Energy will supply 300 MW, and Chhattisgarh Thermal Power will provide 200 MW
• Vedanta operates 12 GW of thermal capacity, including 5 GW of merchant power

Recently,Vedanta Ltd., a company under Anil Agarwal's leadership, announced that it had made an agreement for the purchase of power with the Tamil Nadu Power Distribution Corporation Ltd. (TNPDCL) to supply 500 MW of power at the price of Rs 5.38 per kWh.

The deal will see Vedanta supplying the thermal power business units, 300 MW coming from Meenakshi Energy Limited (MEL) and 200 MW from the Vedanta Limited Chhattisgarh Thermal Power Plant (VLCTPP), to TNPDCL.

The firm has signed a power supply agreement with Tamil Nadu DISCOM, focusing on renewable energy, marking a significant Vedanta power deal that enhances Tamil Nadu's energy infrastructure, supports industrial power needs, and promotes sustainability in the region.

The duration of the deal is five years starting from 1st February 2026, to 31st January 2031, and it guarantees power to TNPDCL at a competitive price.

Vedanta Power, which encompasses both MEL in Andhra Pradesh and VLCTPP in Chhattisgarh, was awarded the largest portion of a total of 1,580 MW tender issued by TNPDCL.

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Rajinder Singh Ahuja, CEO - Power, Vedanta Ltd stated, “The PPAs enhance revenue visibility and financial strength, laying the groundwork for future growth as we move toward the proposed demerger of our power portfolio under the Vedanta Power identity”.

This transaction signifies Vedanta's increasing involvement in the thermal power sector. In 2023, Vedanta acquired Meenakshi Energy in Tirupati, Andhra Pradesh, a 1,000-MW plant, and increased the operation to full capacity.

In 2022, it also acquired the 1,200 MW Vedanta Limited Chhattisgarh Thermal Power Plant, with the first 600 MW unit expected to be operational by August 2025.

In total, Vedanta will now manage nearly 12 GW of thermal power capacity through the above operations; the company also has 5 GW of merchant power assets located in Punjab, Andhra Pradesh, Chhattisgarh, and Odisha.