Tata Power Approves Rs 11,871-Crore Shirwata Storage Project; Odisha Ingot-Wafer Plant Work to Begin

Tata Power has approved an investment of Rs 11,871 crore to develop a 1,800 MW pumped storage project at Shirwata in Maharashtra, strengthening its plans to expand Energy Storage capacity and support renewable power supply. The project is expected to take 51 months to complete, with construction scheduled to begin on January 1, 2027.

Alongside the storage investment, the company is preparing to start construction of its proposed ingot and wafer manufacturing facility at Gopalpur in Odisha. Tata Power expects the plant to begin production by March 2028, adding a new manufacturing component to its Renewable Energy business.

Key Highlights

• Tata Power’s board approved Rs 11,871 crore for a 1,800 MW pumped storage project at Shirwata, Maharashtra.
• The project will be financed through 75% debt and 25% equity and is expected to take 51 months to complete.
• Construction of the Shirwata project is scheduled to start on January 1, 2027.
• Tata Power plans to begin construction of its Odisha ingot-wafer plant in November 2026, targeting production from March 2028.
• The company expects no immediate impact from the Singapore arbitration enforcement proceedings while pursuing legal remedies.

Tata Power Approves Rs 11,871-Crore Shirwata Pumped Storage Project

Tata Power’s board has approved an investment of Rs 11,871 crore for a 1,800 MW pumped storage project at Shirwata in Maharashtra. The project is part of the company’s strategy to increase energy storage capacity as India expands its renewable power generation infrastructure.

The investment will be funded through a combination of debt and equity, with 75% of the project cost coming from debt and the remaining 25% from equity. Tata Power expects the development to be completed within 51 months.

Construction is scheduled to begin on January 1, 2027. Once operational, the facility is expected to support the integration of renewable energy into the electricity supply system by helping manage fluctuations in generation and demand.

How the Shirwata Project Will Support Renewable Power Supply

Pumped storage projects help balance electricity supply by storing energy when demand is relatively low and releasing it when consumption increases or renewable generation declines.

These facilities generally use two water reservoirs at different elevations. Electricity is used to pump water to the upper reservoir, where it is stored. When power is needed, the water flows back down through turbines to generate electricity.

Tata Power plans to use the Shirwata project to support its round-the-clock renewable energy portfolio. The stored power could help the company bundle renewable electricity with storage capacity and supply more consistent power to customers.

CEO and Managing Director Praveer Sinha said the project would support renewable energy round-the-clock (RE-RTC) offerings and could also supply electricity to state distribution companies or central renewable energy procurement agencies.

The project is therefore intended to serve both the company’s renewable energy strategy and the wider requirement for dependable electricity supply. Energy storage can help address the challenge of solar and wind generation varying according to weather and time of day.

Odisha Ingot-Wafer Plant Targets March 2028 Production

Separately, Tata Power is advancing plans for an ingot and wafer manufacturing facility at Gopalpur in Odisha. The company has obtained the necessary clearances and expects to begin construction at the site during November 2026.

Preliminary site activities, including filling and cutting work, have already started. The main construction phase is expected to begin in the second half of November, according to Sinha.

Tata Power is targeting March 2028 for the start of production. However, the company has not yet disclosed the total investment required for the facility or the expected cost savings from the project.

The ingot-wafer plant is part of the company’s effort to strengthen its position in the Solar Manufacturing value chain. Ingot and wafer production represents an important stage in solar photovoltaic manufacturing, supplying intermediate materials used in the production of solar cells and modules.

Why Backward Integration Matters for Tata Power

Backward integration involves bringing more stages of a product’s supply chain under a company’s own operations rather than depending entirely on external suppliers. For solar manufacturers, developing ingot and wafer production capabilities can help strengthen control over the supply of important components.

Such manufacturing capacity could provide greater supply-chain flexibility and reduce dependence on outside sources for these materials. It may also help companies manage procurement costs and improve coordination between different stages of solar production.

However, the actual financial benefits of Tata Power’s Odisha facility will depend on its investment cost, production capacity, operating expenses and market conditions. Since the company has not disclosed these details, the expected savings and commercial contribution cannot yet be assessed.

Tata Power Reports 33% Rise in Q2 FY27 Profit

Tata Power reported stronger financial performance in the second quarter of FY27, with consolidated net profit rising 33% year on year to Rs 1,652 crore. The company had reported a net profit of Rs 1,245 crore in the corresponding quarter of the previous year.

Revenue from operations increased 26% to Rs 19,636 crore, compared with the year-ago period. EBITDA, or earnings before interest, taxes, depreciation and amortisation, rose 5% to Rs 4,245 crore.

The results show growth in revenue and profitability, although EBITDA increased at a slower pace than revenue. The company’s planned investments in storage and solar manufacturing represent additional steps in expanding its energy infrastructure and renewable energy operations.

Tata Power Expects No Immediate Impact from Singapore Dispute

Tata Power is also dealing with a legal dispute involving an arbitration award in Singapore. The Singapore International Commercial Court dismissed the company’s application to set aside an award requiring it to pay $490.32 million, along with costs and interest, to Kleros Capital Partners.

Tata Power has appealed against the decision and is pursuing legal remedies. The appeal is scheduled to be heard by the Singapore Court of Appeal in January 2027.

The dispute has also involved enforcement proceedings concerning Tata Power’s shareholdings in certain Singapore subsidiaries. Notices indicating the attachment of these shareholdings were served by a court-appointed sheriff on November 6.

Commenting on the matter, Sinha said the company was taking legal action against the enforcement proceedings and did not expect any immediate impact. He said the company would continue to pursue the available legal remedies.

The outcome of the appeal and related enforcement proceedings remains uncertain. The company’s statement about the absence of an immediate impact should not be interpreted as a final resolution of the dispute or cancellation of the arbitration award.

What the Developments Mean for Tata Power

The Shirwata pumped storage project and Odisha manufacturing facility reflect two different areas of Tata Power’s expansion strategy. The Maharashtra project is aimed at improving the ability to store and supply electricity, while the Odisha plant is intended to strengthen the company’s position in solar manufacturing.

Both investments are connected to the broader growth of India’s renewable energy sector. As solar and wind capacity increases, the need for storage solutions and a more developed domestic manufacturing supply chain is also becoming more important.

At the same time, the scale of the Shirwata investment means project financing, construction timelines and execution will be important factors to monitor. The Odisha facility will also need to demonstrate that its manufacturing operations can deliver the expected commercial benefits once production begins.

Conclusion

Tata Power’s approval of the Rs 11,871-crore Shirwata pumped storage project marks a significant investment in electricity storage infrastructure. With construction expected to start in January 2027, the project is designed to support round-the-clock renewable power supply and provide additional flexibility to electricity distribution networks.

Meanwhile, the Odisha ingot-wafer facility is expected to begin production in March 2028, potentially strengthening Tata Power’s solar manufacturing supply chain. Alongside its Q2 FY27 profit growth, these developments highlight the company’s expansion plans, even as it continues to manage legal proceedings in Singapore.