Tata Steel Limited (TSL) has reached a significant milestone in its sustainability journey by finalizing negotiations to acquire a 26% stake in TP Vardhaman Surya Ltd. (TPVSL), a wholly owned subsidiary of Tata Power Renewable Energy (TPREL). Alongside this strategic investment, TSL is also set to enter into a fixed-tariff long-term agreement with TPVSL, securing a supply of 379 MW of captive renewable power. This power pact is expected to contribute to a substantial reduction of 50 million tons of carbon emissions over a 25-year contract period.
TPVSL is slated to construct an impressive 966 MW solar-wind hybrid renewable power facility, making it one of the most extensive industrial power projects in the group captive segment in India. This groundbreaking initiative will serve to replace a portion of the existing coal-based power generation at Tata Steel’s Jamshedpur facility while also catering to the power needs of Tata Steel Kalinganagar and the Electric Arc Furnace project located in Ludhiana, Punjab.
T.V. Narendran, Chief Executive Officer and Managing Director of Tata Steel, emphasized the significance of this partnership, underscoring its role in driving Tata Steel’s sustainability goals. He reiterated the company’s commitment to reducing its environmental footprint and transitioning to cleaner, greener energy solutions, aligning closely with Tata Steel’s aspiration to achieve Net Zero carbon emissions by 2045.
Dr. Praveer Sinha, CEO and Managing Director of Tata Power, expressed his satisfaction in developing this sizeable round-the-clock hybrid renewable power plant for Tata Steel. Notably, it stands as one of the largest industrial group captive plants in the nation and is expected to make a substantial contribution to Tata Steel’s clean energy objectives while significantly curbing carbon emissions.
This strategic alliance between Tata Steel and Tata Power Renewable Energy represents a pivotal move in India’s corporate commitment to sustainability and clean energy solutions.