Tata Power Renewable Energy Limited, an arm of Tata Power, on Thursday said it will set up a 100 MW solar power plant for Viraj Profile in Maharashtra.
Viraj Profile Private Limited (VPPL) is a stainless steel manufacturer, which owns and operates a plant located at Tarapur at Nandgaon.
In a statement, Tata Power Renewable Energy Limited (TPREL) said, "It has collaborated with VPL to set up a 100 MW captive solar plant. The plant is expected to generate about 200 MUs of energy and offset approximately 170.43 million Kg of CO2 annually. With the commissioning of this plant, Viraj Profile's dependability on non-renewable power resources will be reduced by approximately 50 per cent".
The project is expected to be commissioned by July 2023, TPREL said without sharing any financial details of the project.
According to industry estimates, to set up every 1 MW of solar capacity, an investment of over Rs 4.5 crore is required.
TPREL further said it has created a special purpose vehicle (SPV) named TP Nanded Limited, which will undertake the construction, operation and maintenance of this captive solar power plant. As per captive generation rules, Tata Power will own 74 per cent of the generation, while Viraj Profile will own the remaining 26 per cent.
"We announce the establishment of our new SPV to construct a 100 MW solar power facility for Viraj Profile Private Limited. This project is another step in TPREL's ongoing efforts to build green and renewable energy solutions throughout India," said Ashish Khanna, CEO, of Tata Power Renewable Energy Limited.
JP Garg, President, Viraj Profiles, said, "Viraj is one of the first stainless steel long products manufacturing companies in India, which will use solar energy to run its manufacturing plants and operations. This Solar Power project will supply 50 per cent of our monthly electricity requirement".