Tata Power, Asian Development Bank ink pact for $4.3-billion finance

Tata Power on Thursday said it has signed an initial pact with Asian Development Bank (ADB) to evaluate financing worth USD 4.25 billion for its several strategic projects.

A memorandum of understanding has been signed with ADB at Baku, Azerbaijan, Tata Power said in a statement.

"The MoU has been signed evaluate financing for its several strategic projects aimed at enhancing India's power infrastructure and promoting renewable and clean energy," it said.

The total estimated project cost is about USD 4.25 billion, Tata Power said.

The MoU outlines the evaluation of financing for several key ongoing projects such as the 966-MW solar wind hybrid project and pumped hydro storage project and other projects in the pipeline around energy transition, decarbonisation, and battery storage as well as ongoing financing for capex towards strengthening the distribution networks.

Tata Power CEO and Managing Director Praveer Sinha said, "Collaboration with ADB is a crucial step as we explore innovative financing solutions to drive transformative power sector projects. The MoU reinforces our commitment to advancing India's clean and renewable energy capacity and modernising our power infrastructure, ensuring sustainable and inclusive growth."

ADB Director General for Private Sector Operations Suzanne Gaboury said, "ADB is committed to fostering partnerships that promote sustainability and energy security across Asia and the Pacific."

Tata Power has a diversified portfolio of 15,010 MW, spanning across the entire power value chain -- from renewable and conventional energy generation to transmission and distribution, trading, storage solutions and solar cells and module manufacturing.