Vedanta's power business secures 500 MW power purchase deal from Tamil Nadu

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Vedanta Ltd’s thermal business units — Meenakshi Energy (MEL) and Vedanta Limited Chhattisgarh Thermal Power Plant (VLCTPP) — have jointly secured a 500 mega watt (MW) Power Purchase Agreement (PPA) from the Tamil Nadu Power Distribution Corporation (TNPDCL), a move that marks a major milestone for the company’s Independent Power Producer (IPP) operations.

 

According to the Letters of Award (LOAs), Meenakshi Energy will supply 300 MW and VLCTPP will supply 200 MW of power to Tamil Nadu under a five-year contract, effective from February 1, 2026, to January 31, 2031, at a tariff of ₹5.38 per kWh.

 

Vedanta Power secured the highest allocation — 500 MW out of a total 1,580 MW tendered by TNPDCL, highlighting its competitive strength and operational excellence.

 

Strengthening Vedanta’s IPP business

 

Vedanta Power, which includes MEL in Andhra Pradesh and VLCTPP in Chhattisgarh, has rapidly expanded its presence as one of India’s most reliable private power producers. Both plants were recently acquired and operationalised in record time, the company said.

 

“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.”

 

Revived and operational in record time

 

Vedanta acquired Meenakshi Energy, a 1,000 MW thermal power plant located in Tirupati district, Andhra Pradesh, in 2023 and executed a rapid revival plan that brought the plant to full operational capacity within two years.

 

Similarly, the 1,200 MW Vedanta Limited Chhattisgarh Thermal Power Plant (VLCTPP) in Singhitarai, Chhattisgarh — formerly Athena Chhattisgarh Power Limited — was acquired as a half-built project in 2022 and achieved commissioning of its first 600 MW unit in August 2025.

 

Powering India’s energy future

 

Across its businesses, Vedanta operates nearly 12 GW of thermal power capacity, of which about 5 GW comprises merchant power (IPP assets) across Punjab, Andhra Pradesh, Chhattisgarh, and Odisha.

 

These assets, now positioned under the Vedanta Power business, play a pivotal role in supporting India’s energy security and economic resilience through dependable, scalable, and efficient power generation.