Vedanta to Lease Out Two Thermal Power Plants in Tamil Nadu.

Vedanta Ltd, a subsidiary of Vedanta Resources Ltd, is looking to lease out its two currently non-operational thermal power plants in Tamil Nadu. The company has invited Expressions of Interest (EoI) from both Indian and international partners for the long-term lease of these imported coal-based facilities.

The two plants include the Thoothukudi plant, with a capacity of 160 MW (2 x 80 MW), and the Mettur Dam plant in Salem, which has a capacity of 128 MW (4 x 30 MW + 1 x 8 MW). According to sources, the initial investment for both power plants was approximately ₹1,000 crore.

The Mettur power plant ceased operations in 2017 due to business reasons. The Thoothukudi power plant, on the other hand, was closed in 2018 following a government order that also shut down the associated Sterlite copper plant.

In its EoI, the $30 billion Vedanta Ltd highlighted the increasing demand for electricity in Tamil Nadu, noting a 6.2 percent rise in 2024-25. The company projects that this demand could further increase by 10-15 percent in the coming years, underscoring the potential for these power generation assets.