Tata Power to invest Rs 1.2 lakh crore in Rajasthan over the next 10 years

India’s largest integrated power company, Tata Power, has signed a Memorandum of Understanding (MoU) with the Government of Rajasthan to invest a massive Rs 1.2 lakh crore in transforming the state’s power sector.

The MoU was signed during the Rising Rajasthan Investor Meet in New Delhi in the presence of Chief Minister Bhajan Lal Sharma; Col Rajyavardhan Rathore, Minister for Industry & Commerce, Rajasthan; and senior officials of the Government of Rajasthan.

The 10-year investment plan aims to support Rajasthan's transformation into a power surplus state, providing 24/7 clean, affordable, and reliable power supply with investments in renewable energy projects and manufacturing, transmission, distribution, nuclear power, rooftop installations, and EV charging.

Key focus on renewable energy

A significant portion of this investment, approximately Rs 75,000 crore, will go towards renewable energy initiatives.

Tata Power plans to develop 10,000 MW of renewable energy capacity across several districts, including Bikaner, Jaisalmer, Barmer, and Jodhpur. This includes 6,000 MW of solar power and 4,000 MW of hybrid energy projects.

The MoU also includes the creation of a 2,000 MW solar module manufacturing facility in Jodhpur, which will further bolster India’s domestic solar manufacturing capabilities.

Dr. Praveer Sinha, CEO & MD of Tata Power, said, “Our partnership with the Government of Rajasthan is a testament to our shared vision of building a low-carbon, resilient, and integrated energy ecosystem in the State. By using our experience across the entire power sector value chain, we aim to support Rajasthan’s energy goals and create economic opportunities for its people.”

Upgrading transmission and distribution infrastructure

Beyond renewable energy, Tata Power has committed significant resources to modernize Rajasthan's power infrastructure. The company plans to invest Rs 20,000 crore to upgrade the state’s distribution systems, aimed at reducing energy losses and improving the quality of power.

An additional Rs 10,000 crore is earmarked for transmission infrastructure improvements. These investments are expected to enhance the reliability of the state's energy grid and ensure the continuous delivery of clean, affordable electricity to both households and industries.

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Commitment to e-mobility and rooftop solar

Tata Power also plans to support Rajasthan’s transition to electric mobility by investing Rs 1,000 crore to establish 1 lakh electric vehicle (EV) charging points across the state. This will play a crucial role in reducing carbon emissions and encouraging the adoption of EVs in the region.

In addition, Tata Power has committed to setting up rooftop solar power systems for 10 lakh households under the PM Surya Ghar Yojana. These installations will promote distributed renewable energy generation, providing affordable and clean power directly to homes across the state.

Notably, the MoU is poised to make Rajasthan a leading renewable energy hub in India, supporting the country's target of installing 500 GW of renewable capacity by 2030 and achieving net-zero emissions by 2070.

Creating over 28,000 direct jobs

The MoU is expected to create over 28,000 direct jobs in Rajasthan, further driving local economic growth. This large-scale investment will benefit various industries such as solar manufacturing, infrastructure development, and renewable energy innovation, making Rajasthan an attractive destination for green investments.

The socio-economic impact of this collaboration is likely to extend beyond the energy sector. By integrating renewables at scale, Tata Power aims to lower energy costs for both consumers and industries, fostering sustainable industrial development in Rajasthan.

Tata Power's presence in Rajasthan

Tata Power already has a significant presence in Rajasthan, having commissioned 1 GW of solar projects and 185 MW of wind projects, along with 130 MW of rooftop solar installations.

The company also operates the Ajmer Distribution Network, serving over 1 lakh customers with reliable power.