Tata Power shares were rising after the power generation firm announced an investment from a U.S. government agency to help fund solar cell manufacturing.
What Happened: The U.S. International Development Finance Corporation has given the green light for a whopping $425 million (roughly ₹35,197 crore) investment in TP Solar Limited, a unit of Tata Power Renewable Energy Limited (TPREL), Tata Power said in an exchange filing.
The company is gearing up to build a state-of-the-art 4.3-gigawatt solar cell and module manufacturing plant in Tamil Nadu’s Tirunelveli district.
Big Picture: TPREL is one of India’s top integrated power firms and aims to start module production at the plant by the end of this year, with cell production on the horizon for the first quarter of fiscal year 2024.
“We appreciate DFC’s assistance for our solar cell and module production facility in Tamil Nadu. It shows the trust and belief DFC has in Tata Power's ability to set up a state-of-the-art manufacturing supply line in the country," said Praveer Sinha, CEO & managing director of Tata Power.
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The Tirunelveli manufacturing plant is poised to integrate advanced technologies, making high-efficiency solar modules and cells. The facility will also adhere to Industry 4.0 standards for smart manufacturing. The project is expected to create over 2,000 jobs, with a focus on women employees from local communities.
Price Action: Tata Power’s share price was up 1.32% at ₹272.40 in the morning hours of trading on Monday.
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