Chennai: Vedanta Limited has signed a power purchase agreement with the Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) for the supply of 500 MW of electricity at a tariff of Rs 5.38 per kWh.
According to Vedanta, its thermal business units Meenakshi Energy Limited (MEL) and Vedanta Limited Chhattisgarh Thermal Power Plant (VLCTPP) will supply power to TNPDCL under the five-year contract effective from February 1, 2026, to January 31, 2031. MEL will contribute 300 MW and VLCTPP 200 MW.
Vedanta Power, which comprises Meenakshi Energy in Andhra Pradesh and Vedanta Ltd Chhattisgarh Thermal Power Plant, secured the highest allocation of 500 MW out of the 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,” said Rajinder Singh Ahuja, CEO - Power, Vedanta Ltd.
Vedanta acquired Meenakshi Energy, a 1,000 MW thermal power plant in Tirupati district, Andhra Pradesh, in 2023 and made it fully operational within two years. The 1,200 MW Vedanta Limited Chhattisgarh Thermal Power Plant in Singhitarai, Chhattisgarh (formerly Athena Chhattisgarh Power Limited), which was acquired in 2022 as a half-built project, commissioned its first 600 MW unit in August 2025.
Across its portfolio, Vedanta operates nearly 12 GW of thermal power capacity, including around 5 GW of merchant power assets across Punjab, Andhra Pradesh, Chhattisgarh, and Odisha.
BI Bureau
