TP Solar, a subsidiary of Tata Power Renewable Energy (TPREL), is set to receive financing of up to $425m for its greenfield 4.3GW solar cell and module manufacturing plant in Tamil Nadu, India from the US International Development Finance Corporation (DFC).

The funding has been approved by DFC’s board of directors.

Tata Power Renewable Energy is a subsidiary of integrated power company Tata Power.

To be located in the Tirunelveli district, the mega solar manufacturing facility will integrate advanced technologies to enable the production of high-wattage solar modules and cells with efficiency.

The Tirunelveli plant is scheduled to produce its first module this year and the first cell in Q1 FY 2024.

Tata Power said that the solar cell and module manufacturing facility will adopt industry 4.0 standards for smart manufacturing.

Furthermore, the plant is anticipated to generate more than 2,000 direct or indirect jobs.

According to Tata Power, the US DFC’s investment will support India’s goal to boost renewable energy manufacturing capability, thereby facilitating the growth of domestic solar capacity as part of its global green energy transition.

Tata Power CEO and managing director Praveer Sinha said: “We appreciate DFC’s assistance for our solar cell and module production facility in Tamil Nadu.

“It shows the trust and belief DFC has in Tata Power’s ability to set up a state-of-the-art manufacturing supply line in the country. This will go a long way in supporting the renewable and clean energy transition in the country.”

Tata Power signed a memorandum of understanding (MoU) in July 2022 with the Tamil Nadu government to set up the facility with INR30bn ($360m) investment.

Last month, the integrated power company signed a MoU with the Maharashtra government to develop two pumped hydro storage projects with a combined capacity of 2.8GW in the Indian state.