Over the Next Decade, Tata Power Plans to Invest INR 1.2 Lakh Crore in Rajasthan

Nitin Konde

Oct 8, 2024 — 3 min read

Over the Next Decade, Tata Power Plans to Invest INR 1.2 Lakh Crore in Rajasthan

The government of Rajasthan and Tata Power, the biggest integrated power firm in India, have inked a Memorandum of Understanding (MoU) for a substantial investment of INR 1.2 lakh crore to overhaul the state's electricity industry.

Senior Rajasthani government officials, together with Chief Minister Bhajan Lal Sharma and Col Rajyavardhan Rathore, the state's minister of industry and commerce, witnessed the signing of the Memorandum of Understanding during the Rising Rajasthan Investor Meet in New Delhi.

With investments in manufacturing, transmission, distribution, nuclear power, rooftop installations, EV charging, and renewable energy projects, the 10-year investment plan seeks to support Rajasthan's transformation into a power surplus state that offers a clean, affordable, and dependable power supply around the clock.

“Tata Powers' investment in Rajasthan is a pivotal step to enhance the energy infrastructure. It is a step towards a future where electric mobility solutions are not just a vision but a reality, especially for e-rickshaws. This investment will significantly enhance the energy infrastructure by providing access to reliable, and affordable charging infrastructure. This step is aligned with India's vision of achieving the electrification goal and it will not only drive higher EV adoption but will also have greater economic benefits including job creation and the growth of ancillary industries such as battery production and EV parts manufacturing. We are confident that this game-changing investment will certainly accelerate the adoption of electric vehicles and empower manufacturers, end users, and local economies alike," stated Nitin Kapoor, Managing Director, SAERA Electric Auto Ltd.

Emphasis on Sustainable Energy Sources

Roughly INR 75,000 crore, or a large amount of the investment, will go into renewable energy projects. In multiple regions, including Bikaner, Jaisalmer, Barmer, and Jodhpur, Tata Power intends to create 10,000 MW of renewable energy capacity. This comprises hybrid energy projects with 4,000 MW and 6,000 MW of solar electricity. India's capacity to manufacture solar modules domestically would be strengthened even further by this MoU, which calls for the construction of a 2,000 MW facility in Jodhpur.

The collaboration between Tata Power and the Government of Rajasthan, according to CEO and MD Dr Praveer Sinha, is evidence of the companies' common goal of creating an integrated, low-carbon energy ecosystem in the region. The company wants to help Rajasthan achieve its energy goals and give its citizens access to economic possibilities by leveraging Tata Power's knowledge throughout the whole power sector value chain.

Modernizing the Power Grid’s Transmission and Distribution Systems

In addition to renewable energy, Tata Power has made a large financial investment in Rajasthan's electricity infrastructure modernization. To update the state's distribution systems and lower energy losses while raising power quality, the business intends to invest INR 20,000 crore.

To improve transmission infrastructure, an extra INR 10,000 crore has been set aside. It is anticipated that these investments will increase the energy grid's dependability in the state and guarantee that businesses and homes will always have access to cheap, clean power.

Focus on Electric Vehicles and Solar Panels for Homes

By investing INR 1,000 crore to build 1 lakh electric vehicle (EV) charge stations throughout the state, Tata Power also intends to assist Rajasthan's shift to electric mobility. This will be crucial in lowering carbon emissions and promoting the use of electric vehicles in the area.

Tata Power has also promised to install rooftop solar power systems under the PM Surya Ghar Yojana for 10 lakh families. With the help of these installations, distributed renewable energy generation will be encouraged, and affordable, clean power will be delivered directly to houses throughout the state.

The MoU has the potential to establish Rajasthan as one of India's foremost renewable energy hubs, helping the state meet its ambitious goals of reaching net-zero emissions by 2070 and 500 GW of renewable capacity installed by 2030.

Directly Supporting More Than 28,000 Individuals

Over 28,000 direct jobs are anticipated to be created in Rajasthan as a result of the MoU, significantly boosting the region's economy. Rajasthan will become a more desirable location for green investments as a result of this significant investment. This development will also support several businesses, such as solar manufacturing, infrastructure development, and innovative renewable energy sources.

This partnership is anticipated to have a far-reaching socio-economic influence above and beyond the energy sector. Tata Power hopes to promote sustainable industrial development in Rajasthan by bringing down energy costs for enterprises and consumers alike through large-scale integration of renewables.