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HomeNewsMarketingTata Power shares rally 6% on commencing production at Tamil Nadu plant

Tata Power shares rally 6% on commencing production at Tamil Nadu plant

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Shares of Tata Power on Tuesday surged 6.6% to the day’s high of Rs 444.80 on the BSE after the company commenced the production of solar cells at India’s largest single-location 4.3 GW solar cell and module manufacturing plant in Tamil Nadu.

The facility is set to boost domestic manufacturing of cells and modules and thereby aid India’s solar energy and net-zero goals. It is equipped with advanced TOPCon and Mono Perc technology to enhance solar cell efficiency.

“The indigenous production of solar cells marks a significant milestone, supporting India’s ambitious clean energy goals and reducing reliance on imports. 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,” said the company via a filing to the exchanges.

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 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 1250 MW of solar modules to date.

“The commencement of cell production at our Tirunelveli plant is a significant step towards indigenisation in the solar value chain and achieving self-sufficiency. We are committed to making solar power accessible to all and ensuring a bright future for India, powered by renewable energy. We believe that this plant will lead the way in supporting the country’s vision for a Net-Zero carbon future,” said . Praveer Sinha, CEO and Managing Director, Tata Power while commenting on the production launch.Also read: Premier Energies shares continue their bull run, skyrocket 181% since listingThe company has committed nearly Rs 4,300 crore towards the establishment of this facility, which is a cornerstone of Tata Power’s strategy to lead India’s renewable energy transition, particularly in the solar rooftop and utility-scale segments, where it holds a 20% market share and aims for further expansion under programs like PM Surya Ghar Yojana. While the modules produced from this factory are a part of the Government’s Approved List of Models and Manufacturers (ALMM), the company is confident that its high-quality cells will also make it to the ALMM list for cells, expected to be announced by the Government soon.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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