CHENNAI: Anil Agarwal-led Vedanta Ltd on Thursday said 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.
It is a five-year contract, effective from February 1, 2026, to January 31, 2031.
Vedanta Limited’s thermal business units Meenakshi Energy Limited (MEL) and Vedanta Limited Chhattisgarh Thermal Power Plant (VLCTPP) have secured the 500 MW Power Purchase Agreement (PPA) from Tamil Nadu Power Distribution Corporation Limited (TNPDCL), marking a milestone in its Independent Power Producer (IPP) business and reinforcing its position as a reliable contributor to India’s energy security.
As per the Letters of Award (LOAs), Vedanta’s MEL and VLCTPP will supply 300 MW and 200 MW of power respectively to TNPDCL. 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, a testament to its competitive edge and operational excellence in the power sector. Both these power plants were recently acquired and operationalised by Vedanta in record time.
Rajinder Singh Ahuja, CEO, Power, Vedanta, said, “Reliable baseload power is vital to India’s energy security, and thermal energy continues to play a key role in ensuring that stability. This win reflects Vedanta’s growing leadership in efficient and dependable power generation. 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.”
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.
Likewise, the 1,200 MW Vedanta Limited Chhattisgarh Thermal Power Plant in Singhitarai, Chhattisgarh, acquired in 2022 as a half-built project, achieved commissioning of its first 600 MW unit in August 2025.