The U.S. International Development Finance Corporation (DFC) has approved $425 million in financing for Tata Power Renewable Energy’s (TPREL) upcoming 4.3 GW greenfield solar cell and module manufacturing facility in Tamil Nadu.

The facility, located in the Tirunelveli district, is expected to begin module production by the end of 2023 and cell production by the first quarter of the financial year 2024.

TPREL, a Tata Power subsidiary, will implement industry 4.0 standards for smart manufacturing in the facility, integrating advanced technologies to enable the production of high-wattage solar modules and cells with higher efficiencies.

The facility is projected to create over 2,000 employment opportunities directly or indirectly, with a majority of the jobs given to women and locals.

Praveer Sinha, CEO and MD of Tata Power, said, “We appreciate DFC’s assistance for our solar cell and module production facility in Tamil Nadu. It shows the trust and belief DFC has in Tata Power’s ability to set up a state-of-the-art manufacturing supply line in the country. This will go a long way in supporting the renewable and clean energy transition in the country.”

The financing approved by the Board of Directors at DFC is pending U.S. congressional notification.

DFC, America’s development finance institution, partners with private sector players across the globe to finance development and sustainability solutions.

In December 2021, it approved $500 million of debt financing to First Solar to set up a 3.3 GW vertically integrated solar module manufacturing facility in Tamil Nadu.

With the funding, DFC aims to support India’s ambitious program to establish a robust domestic manufacturing capability to support the increasing solar capacity additions in the country.

Tata Power aims to increase its clean energy capacity from 38% to 70% by 2030, focusing on expanding renewable energy capacity and transitioning into a consumer-oriented business.

The company’s renewable energy portfolio is ~7.8 GW, comprising a 4.1 GW operational and 3.6 GW pipeline capacity. It also has a solar cell and module manufacturing facility with 500 MW capacity each in Bengaluru.

In March this year, TP Solar, another Tata Power subsidiary, was allotted ₹3.8 billion (~$46 million) for manufacturing 4 GW of modules under Tranche II of the Solar Modules Manufacturing Performance-Linked Incentive program.

Tata Power reported a net profit of ₹11.41 billion (~$137.71 million) in the first quarter of the financial year 2024, marking a growth of 29% year-over-year.