Market Performance
Tata Power share price came under pressure in the stock market today, slipping over 1.5% on January 7. The decline came a day after the company announced a major renewable manufacturing investment through its subsidiary.
By 2:00 pm, Tata Power shares were trading 1.75% lower at ₹380 per share, reflecting cautious market sentiment despite the long-term nature of the announcement.
Short-term price movement aside, the stock reacted to the timing and scale of the capital expenditure rather than the strategic intent of the project.
Main News
Tata Power said its renewable arm, Tata Power Renewable Energy Ltd , will set up a greenfield 10 GW ingot and wafer manufacturing facility in Nellore, Andhra Pradesh.
The total investment for the project stands at ₹6,675 crore.
This facility is designed to become India’s largest ingot and wafer manufacturing unit, strengthening the domestic supply chain for solar components at a time when import dependence remains high.
The project has already received approval from the State Investment Promotion Board (SIPB), chaired by Andhra Pradesh Chief Minister Chandrababu Naidu, clearing a key regulatory milestone.
Why the Market Reacted?
In the stock market today, large capital investments often trigger near-term caution. The announcement highlighted:
- High upfront investment of ₹6,675 crore
- Greenfield manufacturing risk in a new geography
- Long gestation period before the facility becomes operational
These factors likely influenced the short-term movement in Tata Power share price, even as the project strengthens the company’s renewable footprint.
Company & Project Details
The manufacturing facility will be developed at the IFFCO Kisan Special Economic Zone (SEZ) in Nellore.
Key details of the project include:
- Total capacity: 10 GW ingot and wafer manufacturing
- Land allocation: 200 acres
- 120 acres for the initial phase
- 80 acres reserved for future expansion
- Investment size: ₹6,675 crore
Ingot and wafers are essential components used in:
- Solar cells
- Solar modules
- Semiconductor applications
This positions the unit as a critical link in India’s solar manufacturing ecosystem.
Employment & Green Power Integration
Beyond manufacturing, the project carries an employment and clean energy angle.
According to the announcement:
- Around 1,000 direct jobs are expected to be created
- Additional indirect employment will come from construction and allied activities
To support its sustainability goals, TPREL will also set up a:
- 200 MW captive green power plant
- Purpose: Supplying renewable energy directly to the manufacturing facility
This aligns the project with the broader clean energy manufacturing framework.
Why Andhra Pradesh Attracted the Project?
Several state-level advantages played a role in attracting this investment:
- Ready-to-use industrial land
- Strong infrastructure support
- Efficient port connectivity
- Assured access to green power
Nellore, in particular, is steadily emerging as a solar manufacturing cluster, with multiple renewable energy companies planning or executing large-scale projects in the region.
Company Context
This investment marks TPREL’s first manufacturing project in Andhra Pradesh under its renewable energy expansion plans.
While Tata Power is widely present across power generation, transmission, and renewables, this move strengthens its position in the upstream solar manufacturing space, an area of growing strategic importance.
Summary
- Tata Power share price fell over 1.5% in the stock market today
- The reaction followed the announcement of a ₹6,675-crore 10 GW solar ingot-wafer facility
- The project will be located in Nellore, Andhra Pradesh, spread across 200 acres
- It will be India’s largest ingot and wafer manufacturing unit
- The facility is expected to create around 1,000 direct jobs
- A 200 MW captive green power plant will supply renewable energy to the unit
The short-term market response reflected caution, while the announcement underlined Tata Power’s deepening commitment to renewable manufacturing within India’s evolving energy landscape.
Source: Moneycontrol
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