Vedanta's Idle Power Assets in Tamil Nadu Open for Leasing

Vedanta Ltd., a subsidiary of Vedanta Resources, has announced plans to lease its two non-operational thermal power plants in Tamil Nadu and has invited Expressions of Interest (EoIs) from both Indian and international partners for the proposed leasing arrangement.

The two plants include a 160 MW (2 x 80 MW) facility in Thoothukudi and a 128 MW plant (4 x 30 MW + 1 x 8 MW) near Mettur Dam in Salem. The Mettur facility has remained shut since 2017 due to business considerations, while the Thoothukudi plant was closed in 2018 following a government directive alongside the shutdown of the adjacent Sterlite copper unit. The combined investment in both plants is estimated at approximately ₹1,000 crore, according to industry sources.

In its EoI document, Vedanta highlighted that electricity demand in Tamil Nadu rose by 6.2% in FY 2024–25 and is projected to grow by an additional 10–15% in the coming years, indicating a strong market potential for power generation assets.

Vedanta Power, one of India's largest private-sector power producers, currently operates a total installed capacity of 4,780 MW across the country. The leasing of these Tamil Nadu assets is seen as part of its strategy to unlock value from underutilized infrastructure and align with evolving energy demand trends.

News by Rahul Yelligetti.