Vedanta Power has achieved a 500MW Power Purchase Agreement (PPA) with Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), increasing its position in the Indian power industry.
The contract which is to be signed by Vedanta in the form of subsidiaries namely Meenakshi Energy Ltd and Vedanta Limited Chhattisgarh Thermal Power Plant (VLCTPP) will provide power to the southern state at a tariff of 5.38 per kWh over a period of five years.
According to the contract, 300 MW is to be supplied by Meenakshi Energy and 200 MW is to be supplied by VLCTPP. The contract shall start on 1 February 2026 and continue until 31 January 2031. It constitutes 1,580 MW tender of TANGEDCO, in which Vedanta Power secured nearly a third of the overall capacity provided.
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“Reliable baseload power is vital to India’s energy security, and thermal energy continues to play a key role in ensuring that stability,” said Rajinder Singh Ahuja, Chief Executive Officer – Power, Vedanta Limited. “This win reflects Vedanta’s growing leadership in efficient and dependable power generation. The PPAs enhance revenue visibility and financial strength as we move toward the proposed demerger of our power portfolio under the Vedanta Power identity.”
The company indicated that the PPA is a significant step towards its expansion of its independent power producer (IPP) business. Vedanta Power plans to have stable revenue and better utilization of the thermal assets by engaging in a long-term supply commitment. Industry analysts see the transaction as a strategic success of Vedanta Power when thermal power is still a key component of the Indian energy mix. Despite the transition to renewables, baseload power remains an important addition to grid stability and serving the increasing electricity demand of the country.
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