Tata Steel will acquire 26 per cent stake in TP Vardhaman Surya (TPVSL), a wholly-owned subsidiary of Tata Power Renewable Energy.
TSL will also execute a fixed-tariff long-term agreement with TPVSL to source 379 MW of captive renewable power, which will save 50 million tonne of carbon emissions over the contract period of 25 years.
TPVSL will set up a 966 MW solar-wind hybrid renewable power facility which would make it one of the biggest industrial power projects under group captive segment in the country.
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This arrangement will replace a part of the existing coal-based power generation at Tata Steel Jamshedpur and cater to the requirements at Tata Steel Kalinganagar and the Electric Arc Furnace project at Ludhiana, Punjab.
TV Narendran, Managing Director, Tata Steel, said the partnership with Tata Power Renewable Energy marks a pivotal step in the company’s sustainability journey towards achieving Net Zero carbon emissions by 2045.
Praveer Sinha, Managing Director, Tata Power, said the company will develop round-the-clock hybrid renewable power plant for Tata Steel.
It will be 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, he added.