PremiumNew Delhi: Ceat Ltd has tied up with Tata Power Ltd to set up a captive solar power plant, with 10 megawatt capacity, for its tyre manufacturing unit in Bhandup, Maharashtra.
Tata Power has created a special purpose vehicle (SPV) -- TP Akkalkot Renewable Limited -- for the construction, operation, and maintenance of this captive solar power plant.
“CEAT will own 26% of the captive solar power plant and Tata power will own 74%, as per the captive generation rules. The power generated will be used for captive consumption by CEAT’s Bhandup plant. The Plant is expected to generate about 21 MUs of energy per year and will annually offset approximately 17.43 Million Kg of CO2," the statement mentioned.
Tata Power now has an order book of over ₹8,700 crore and a capacity of around 2,800 MW in FY21. It has a portfolio of more than 5.4 GW of ground-mount utility-scale solar projects and over 500 MW of rooftop and distributed generation projects across the country till date.
“The tie-up with Tata Power for installation of solar power generation plant in Maharashtra signifies our continued commitment towards shift to sustainable energy and underpins our commitment towards building a better future. Our purpose is “Making Mobility Safer and Smarter. Everyday", and we are committed to the cause of sustainability," said Kumar Subbiah, chief financial officer, CEAT.
The current arrangement will reduce Ceat's dependency on non-renewable energy and also be a significant milestone in the company’s goal towards carbon neutrality.
“We are glad to associate with CEAT Limited and announce our new SPV. Through TP Akkalkot, we aim to continue to build a robust renewables portfolio and expand our horizons in the captive power generation sector," said Ravinder Singh, chief, Solar Rooftops Business, Tata Power.
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