Vedanta Inks Pact to Supply 500 MW Power to Tamil Nadu Discoms

Vedanta Ltd has entered into a power purchase agreement (PPA) with the Tamil Nadu Power Distribution Corporation Ltd (TNPDCL) for the supply of 500 megawatts (MW) of electricity. The 5-year contract will be valid from February 1, 2026, to January 31, 2031, at a tariff of ₹5.38 per kilowatt-hour (kWh), as per the news reports.

Power will be supplied through Vedanta’s 2 thermal units, Meenakshi Energy Limited (MEL) and Vedanta Limited Chhattisgarh Thermal Power Plant (VLCTPP). MEL will provide 300 MW, while VLCTPP will supply 200 MW.

Highest Allocation Under TNPDCL Tender

The Tamil Nadu discom had sought 1,580 MW of power through a competitive bidding process. Vedanta received the largest allocation under this tender, securing one-third of the total capacity offered. The agreement is intended to support Tamil Nadu’s base power requirements during the contract period.

Meenakshi Energy Operations

Meenakshi Energy, a 1,000 MW thermal power plant located in Tirupati district, Andhra Pradesh, was acquired by Vedanta in 2023. The plant was brought to full operational status within two years following the acquisition. It contributes to Vedanta’s independent power producer (IPP) portfolio, supplying electricity to various state utilities.

Chhattisgarh Plant Commissioning

The 1,200 MW Vedanta Limited Chhattisgarh Thermal Power Plant, situated in Singhitarai, Chhattisgarh, was previously known as Athena Chhattisgarh Power Limited. Vedanta acquired the partly built project in 2022. Its first 600 MW unit was commissioned in August 2025, with additional capacity expected to be operational in later phases.

Vedanta’s Total Capacity

Vedanta currently operates close to 12 gigawatts (GW) of thermal power generation capacity across India. Around 5 GW of this capacity is part of its merchant or IPP business, which includes plants in Punjab, Andhra Pradesh, Chhattisgarh, and Odisha.

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Vedanta Share Price Performance 

As of November 7, 2025, 10:20 AM, Vedanta share price was trading at ₹502.75, a 0.44% decrease from the previous closing price.

Conclusion

The new agreement with Tamil Nadu adds to Vedanta’s power supply portfolio and supports the state’s upcoming electricity requirements over the next five years.

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