Tata Power secures $4 bn credit line from ADB for green energy expansion

Tata Power Ltd plans to significantly increase its capital expenditure to ₹1.25 lakh crore during the five-year period from FY26 to FY30 for green capex.

Tata Power Ltd plans to significantly increase its capital expenditure to ₹1.25 lakh crore during the five-year period from FY26 to FY30, more than doubling its spending from the previous five years. 

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CEO Praveer Sinha said that the investment will focus on renewable energy projects, pumped hydro storage plants, and an exploration into nuclear energy through small modular reactors (SMRs). Speaking at the company’s solar cell and module manufacturing plant in Gangaikondan, Tamil Nadu, Sinha noted that plans for SMRs are still in the early stages. The announcement follows Tata Power securing a $4 billion credit line from the Asian Development Bank to support its green energy expansion.

The Gangaikondan facility, operated by TP Solar Ltd, is a critical part of Tata Power’s renewable energy strategy. Built with an investment of ₹4,300 crore, the facility houses a 4.3 GW solar module manufacturing unit and a 2 GW cell plant. Around 50% of the production is earmarked for Tata Power’s solar projects, with the rest serving domestic demand.

The plant utilises advanced mono PERC and TOPCon bifacial technology, with cell efficiency levels of up to 23.6%. Sinha highlighted that the facility does not engage in exports, instead prioritising the Indian market despite higher profitability opportunities abroad. “We are a very different company,” he said, emphasising the commitment to India’s energy needs.

Sinha also ruled out backward integration into wafer manufacturing, citing ample global supply. This aligns with Tata Power’s strategy to focus on scaling solar energy production while exploring emerging opportunities in nuclear energy and advanced renewable technologies.

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