Vedanta secures 500 MW power supply contract from Tamil Nadu utility

Vedanta Limited’s thermal power units, Meenakshi Energy (MEL) and Vedanta Limited Chhattisgarh Thermal Power Plant (VLCTPP), have jointly won a 500 MW Power Purchase Agreement (PPA) from the Tamil Nadu Power Distribution Corporation (TNPDCL). The five-year agreement, effective from February 1, 2026, to January 31, 2031, is priced at Rs 5.38 per kWh.

Meenakshi Energy will supply 300 MW and VLCTPP 200 MW, marking Vedanta’s largest allocation in TNPDCL’s 1,580 MW tender. The win strengthens its position as a key Independent Power Producer (IPP).

Both plants were recently revived and commissioned by Vedanta Power. MEL’s 1,000 MW unit in Andhra Pradesh became fully operational within two years, while VLCTPP’s 600 MW unit in Chhattisgarh began operations in August 2025.

Rajinder Singh Ahuja, CEO – Power, Vedanta Limited, said the new PPA demonstrates the company’s reliability and efficiency in power generation. He added that thermal energy remains vital for India’s energy security and that the PPAs strengthen Vedanta’s financial position ahead of the planned demerger of its power portfolio under Vedanta Power.