Vedanta signs pact with Tamil Nadu discom for supply of power

NEW DELHI: Anil Agarwal-led Vedanta Ltd on Thursday said that its has entered into a pact with Tamil Nadu power distribution company TNPDCL for supply of 500 MW of electricity at the rate of Rs 5.38/kWh.

In a statement Vedanta said that its thermal business units Meenakshi Energy Limited (MEL) and Vedanta Limited Chhattisgarh Thermal Power Plant (VLCTPP) have secured a 500 MW power purchase agreement with Tamil Nadu Power Distribution Corporation Ltd (TNPDCL).

Under the agreement, MEL will supply 300 MW, and VLCTPP 200 MW to TNPDCL.

The five-year contract, effective from February 1, 2026 to January 31, 2031, has been awarded at a tariff of Rs 5.38/kWh, Vedanta said.

Vedanta Power, which includes Meenakshi Energy in Andhra Pradesh and Vedanta Ltd. Chhattisgarh Thermal Power Plant, secured the highest allocation of 500 MW out of a total 1,580 MW tendered by TNPDCL.

"The PPAs enhance revenue visibility and financial strength, laying the groundwork for future growth as we move toward the proposed demerger of our power portfolio under the Vedanta Power identity," Rajinder Singh Ahuja, CEO – Power, Vedanta Ltd, said.

Vedanta acquired Meenakshi Energy, a 1,000-MW thermal power plant located in Tirupati district, Andhra Pradesh, in 2023, and made it operational with full capacity within two years.

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

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