Vedanta Ltd has formalised a 500 MW power supply agreement with Tamil Nadu Power Distribution Company Limited (TNPDCL), signalling a significant addition to the state’s electricity grid. Under the five-year contract, Meenakshi Energy Limited (MEL) will deliver 300 MW, while Vedanta Ltd Chhattisgarh Thermal Power Plant (VLCTPP) contributes 200 MW. The agreement, effective from 1 February 2026 to 31 January 2031, is priced at Rs 5.38 per kWh.
Industry experts note that this allocation represents the largest single award in TNPDCL’s 1,580 MW tender, reflecting Vedanta Power’s strategic positioning in India’s merchant power market. “The PPAs provide long-term revenue visibility and strengthen financial planning, supporting Vedanta’s future expansion as the power portfolio is demerged under the Vedanta Power identity,” said a senior company executive. Vedanta’s Meenakshi Energy plant, acquired in 2023 in Tirupati district, Andhra Pradesh, was a 1,000 MW thermal facility that became fully operational within two years. Meanwhile, the Chhattisgarh Thermal Power Plant, originally a half-built 1,200 MW project purchased in 2022, commissioned its first 600 MW unit in August 2025, completing a crucial phase of infrastructure readiness.
The two plants’ integration under Vedanta Power reflects a growing focus on structured operations and long-term sustainability. While thermal assets remain central, the company emphasises operational efficiency, grid reliability, and financial viability, all of which are critical to supporting regional energy demands. For Tamil Nadu, the PPA ensures a steady supply of 500 MW of reliable electricity, bolstering both industrial and residential consumption. Officials from TNPDCL highlighted that securing dependable private-sector power is part of broader state efforts to stabilise grid capacity and reduce reliance on emergency power procurement during peak demand periods.
Vedanta currently operates nearly 12 GW of thermal capacity across India, including approximately 5 GW of merchant power in Andhra Pradesh, Chhattisgarh, Odisha, and Punjab. Analysts note that long-term PPAs like this one provide both investors and state utilities with clarity on supply, tariffs, and operational planning, strengthening the overall energy ecosystem. While thermal generation faces growing scrutiny for carbon emissions, Vedanta has indicated ongoing efforts to improve efficiency and integrate cleaner practices within its operations. Industry observers say that transparent planning and adherence to environmental norms are essential for balancing energy security with India’s sustainability commitments.
The Tamil Nadu PPA highlights the role of private-sector thermal assets in stabilising regional grids while allowing companies like Vedanta to consolidate and grow their power portfolios in a competitive market.
Vedanta Ltd Secures 500 MW Power Supply Contract With TNPDCL Tamil Nadu
