Vedanta Power, with a portfolio of nearly 5 GW, represents the independent power producer (IPP) business of the Vedanta Group, with thermal power assets spread across Punjab, Andhra Pradesh, Chhattisgarh and Odisha. In this exclusive interaction, we have Rajinder Singh Ahuja, CEO – Power, Vedanta Ltd, highlighting the group’s ability to rapidly transform stressed assets into profitable ventures, thereby making valuable contribution to India’s energy security. Ahuja also gives keen insights into Vedanta Power’s future roadmap that includes a foray in the nuclear power space. An interview by Venugopal Pillai.
We understand that Vedanta Group has power generation capacity of 10 GW whereas Vedanta Power has around 4.8 GW. Do we assume that Vedanta Power handles all the non-captive power generation plants?
The Vedanta Group currently operates nearly 12 GW of thermal power capacity across its businesses, which includes about 5 GW of merchant power (IPP assets) spread across Punjab, Andhra Pradesh, Chhattisgarh, and Odisha, under Vedanta Power, with the remaining capacity dedicated to captive power assets.
Acquisitions, as we understand, have played an important role in the growth of Vedanta Power’s portfolio. Tell us about the recent Meenakshi Energy plant that was operationalized within two years of its acquisition. What was the status of the power plant at the time of acquisition?
Meenakshi Energy has four units of thermal capacity (2×150-MW and 2×350-MW). The project, first incorporated in 1996 as Vikas Power, changed ownership multiple times before entering the Corporate Insolvency Resolution Process (CIRP) in 2019. Vedanta Ltd acquired the stressed asset in 2023 and undertook a structured, accelerated revival plan.
Since its acquisition by Vedanta Ltd, in Phase-1, the two 150-MW units were stabilized and operationalized. In Phase-2, the larger 350-MW units were commissioned in July and August 2025, taking the plant to its full 1,000-MW capacity. Achieving complete turnaround and commercialization within just two years stands as a testament to Vedanta’s technical expertise and execution capabilities in reviving Meenakshi Energy.
How has been the recent performance of 1,200-MW Chhattisgarh thermal power plant that was acquired from the Athena Group around three years ago?
The 1,200-MW Athena plant (2×600-MW) was an incomplete thermal project at the time of acquisition. It was later amalgamated with Vedanta Ltd in 2023 through an NCLT Hyderabad order and renamed Vedanta Ltd. Chhattisgarh Thermal Power Plant (VLCTPP).
In just three years, we successfully revived and operationalized Unit 1, which is now running at full load and supplying power to exchanges, while Unit 2 is under project phase and progressing towards commissioning.
The commissioning of Meenakshi Energy and VLCTPP is a strong example of Vedanta’s ability to transform stressed assets into efficient and profitable businesses, with the aim of contributing to India’s energy security.
The Talwandi Sabo plant, as we appreciate, has been Punjab’s main energy source for over ten years now. We also understand that Punjab has highly variable energy requirement during agricultural and non-agricultural phases. What happens to power offtake during the lean demand phase?
Talwandi Sabo, a 1,980-MW (3×660-MW) supercritical plant, is Punjab’s largest as well as North India’s largest private thermal power plant. It contributes to 25-30 per cent of Punjab’s daily power needs.
Talwandi Sabo (TSPL) operates under a long-term power purchase agreement (PPA) with Punjab State Power Corporation Ltd (PSPCL). Under this arrangement, PSPCL pays fixed charges to TSPL irrespective of seasonal demand, along with variable charges linked to actual costs. This structure ensures that TSPL’s revenues remain insulated from fluctuations in Punjab’s power demand and supply.
For all the four generation of Vedanta Power, what is the situation with respect to coal linkages? Given that Vedanta Group is also engaged in coal mining, is some of the coal sourced internally?
TSPL, which primarily sources coal from SECL (South Eastern Coalfields), and Vedanta’s 600-MW Jharsuguda IPP have been operating successfully for nearly a decade with established coal linkages under long-term fuel supply agreements.
VLCTPP, on the other hand, benefits from its proximity to coal mines, while the recently commissioned Meenakshi Energy, currently sources coal through Krishnapatnam Port. Since long-term fuel supply agreements are contingent on long-term PPAs, we are actively pursuing such linkages for both VLCTPP and Meenakshi to ensure reliable, sustainable, and cost-efficient operations going forward.
Taking the entire 4.8-GW portfolio of Vedanta Power, how much capacity is locked-in by long-term power purchase agreements? Is there free capacity/generation to be sold as merchant power or through power exchanges?
TSPL and Vedanta’s 600-MW Jharsuguda IPP operate under PPAs with their respective state discoms—PSPCL and GRIDCO. In contrast, the recently-revived Meenakshi Energy (1,000 MW) and VLCTPP (600 MW) are currently selling power in the market through short-term contracts. We are actively exploring medium and long-term offtake opportunities to strengthen security for the business.
What is the situation with respect to FGD retrofitting for the four operational plants?
All thermal power plants in our current portfolio comply with the MoEFCC’s FGD (Flue Gas Desulfurization) retrofitting notification (ref: Environment (Protection) Fourth Amendment Rules, 2025).
We appreciate that capex of around Rs.550 crore was approved for the Athena and Meenakshi Energy plants. Please elaborate.
Both projects VLCTPP (erstwhile Athena) and Meenakshi Energy are on track for completion within the planned capex. We remain committed to operational and financial excellence, with robust monitoring and controls in place to ensure all project commitments are met.
There was a time when power plant equipment (both subcritical and supercritical) was largely sourced from Chinese suppliers. How do you view the situation now?
The government’s focus on ‘Make in India’ is guiding our engagement with domestic power equipment manufacturers as we plan the next phase of growth. That said, with most Indian suppliers currently at full order book, achieving the government’s target of 97 GW of additional thermal capacity by 2034–35 will require imports to supplement domestic manufacturing and ensure timely project execution.
Though India has outlined massive targets for renewable energy, its reliance on coal-fired power plants cannot be wished away. All the same, there is increasing pressure on coal-fired power plants to minimize their carbon footprint. How do you assess the situation and what measures is Vedanta Power taking in this direction?
India is the world’s third-largest power producer, yet energy demand continues to outpace supply. Rapid economic growth makes a reliable power sector essential. While renewables are key to reducing carbon emissions, their variable nature and limited storage mean they cannot fully meet base-load and peak-load requirements. Thermal power remains critical as a dependable, continuous source, providing stable electricity for industrial operations and overall economic stability. Expanding renewable capacity further underscores the need for adequate thermal backup to ensure grid reliability and 24×7 electricity for India’s 1.4 billion people and a $4.3-trillion economy.
Vedanta Group is fully aligned with India’s Net Zero vision and is playing a pivotal role in the nation’s energy transition. Beyond its critical minerals portfolio and renewable arms — Serentica, Resonia, and Sterlite — that are accelerating the shift to clean energy, Vedanta Power’s thermal portfolio is also advancing towards a low-carbon future.
TSPL has implemented biomass co-firing, turning agro-residue into fuel and reducing stubble burning, while both TSPL and Meenakshi Energy have achieved 100 per cent fly ash utilization, supplying cement, bricks, and NHAI road projects.
TSPL has also developed a green belt of over 800 acres, home to more than 8 lakh trees, contributing to an 84 per cent increase the forest cover of Mansa in Punjab.
Please discuss Vedanta Power’s capacity expansion plans, highlighting diversification, if any.
Vedanta Power is on a strong growth trajectory in the thermal segment. We are evaluating additional thermal IPP capacity through a mix of expansions at current assets and participation in upcoming state tenders. Beyond thermal, we are also exploring opportunities in nuclear power space, marking the next phase of our diversified energy strategy.