Tata Power shares gain 3% as arm commences solar cell production at Tirunelveli plant

Shares of Tata Power gained as much as 3.14% to ₹431 apiece on the BSE on Tuesday, September 10, as the company announced on Monday that its unit of its subsidiary has commenced production of solar cells at India's largest single-location in Tirunelveli, Tamil Nadu, helping boost domestic manufacturing of cells and modules needed to convert sunlight into electricity.

In its filing, the company said, "TP Solar, a subsidiary of Tata Power Renewable, which is a subsidiary of Tata Power Company, announced on Monday, September 9, the commencement of commercial production from the 2GW solar cell line at its state-of-the-art manufacturing facility in Tirunelveli, Tamil Nadu—the country’s largest single-location solar cell & module plant."

This follows the successful production of solar modules earlier this year.

"The solar cell production, currently at 2 GW capacity, will enhance Tata Power's ability to meet the growing demand for high-quality and domestically produced solar components, especially for large-scale capacity-addition projects," it said.

It added that the plant is expected to ramp up production with the remaining 2 GW capacity to be added over the next 4-6 weeks, reaching peak production of 4 GW within the next few months.

Having a total cell and module manufacturing capacity of 4.3 GW, the module production line at the Tirunelveli plant was commissioned in October 2023 and has produced 1,250 MW of solar modules to date.

Last week, the joint ventures between Tata Power and the Odisha government, placed orders worth ₹8,690 crore with local MSMEs and ₹2,791 crore to non-MSMEs by the discoms over the past three years since taking over the state's power distribution operations.

These contracts, spread across two major categories like materials and services, have been awarded to local contractors and suppliers.

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