The board of the U.S. International Development Finance Corporation (DFC) has given its approval to a provision of funding for the Tata Group’s future greenfield 4.3 GW solar cell and module manufacturing factory in Tirunelveli, amounting to up to USD 425 million.
Tata Power Renewable Energy Limited (TPREL) subsidiary TP Solar Limited is building the facility. A division of Tata Power Company Limited is TPREL.
According to a release, the first module production at the factory is anticipated to begin by year’s end, and the first cell production is anticipated to begin in the first quarter of FY 24. The facility will incorporate cutting-edge technologies to produce solar modules and cells with high wattages and industry-leading efficiencies.
The facility will also put industry 4.0 norms for smart manufacturing into practise. Over 2,000 jobs are anticipated to be directly or indirectly created by the plant, with local women making up the majority of the workforce.
According to the statement, this investment will boost India’s ambitious plan to improve its capacity to produce renewable energy as part of its global transition to green energy, pending notice of the U.S. Congress.
The financial support comes as world leaders discuss the energy transition and other important environmental concerns at the just-concluded G20 Summit in New Delhi. According to the announcement, this financial support will help India fulfil its pledge to generate 500 GW of sustainable energy by 2030.
“It demonstrates the confidence and faith DFC has in Tata Power’s capabilities to establish a cutting-edge manufacturing supply chain in the nation. This would significantly boost the nation’s shift to clean and renewable energy, according to Praveer Sinha, CEO & MD of Tata Power.
According to Tata Power, it plans to raise its clean and green energy capacity from 38% to 70% by 2030. The company is actively concentrating on increasing its renewable capacity and converting to consumer-focused companies.
The company also has a 500 MW capacity solar cell and module manufacturing facility in Bengaluru.