Vedanta’s thermal business units Meenakshi Energy (MEL) and Vedanta Limited Chhattisgarh Thermal Power Plant (VLCTPP) have secured a 500 MW Power Purchase Agreement (PPA) from Tamil Nadu Power Distribution Corporation (TNPDCL), marking a significant 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. The five-year contract, effective from February 1, 2026, to January 31, 2031, has been awarded at a tariff of ~₹5.38/kWh.
Vedanta Power, which includes Meenakshi Energy in Andhra Pradesh and VLCTPP, 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.
Commenting on the development, 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. Our successful turnaround of Meenakshi Energy and VLCTPP demonstrates the strength of our operating model and underscores Vedanta’s ability to create value from complex assets. 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 successfully 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 (VLCTPP) 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. These assets, collectively positioned under the Vedanta Power business, underpin India’s journey toward energy security and economic resilience through dependable and sustainable power supply.
