The US International Development Finance Corporation has authorised a loan of up to USD 425 million (Rs 3,521 crore) to Tata Power Renewable Energy Ltd for the establishment of a 4.3 GW solar cell by its subsidiary in Tamil Nadu.

The plant's first module production is planned by the end of the year, while the first cell production is expected in the first quarter of the fiscal year 2024-25 (FY25), according to Tata Power Renewable Energy Ltd (TPREL).

"The US International Development Finance Corporation board of directors approved USD 425 million of financing in TP Solar Ltd, a subsidiary of TPREL, for its upcoming greenfield 4.3 GW solar cell and module manufacturing plant at Tirunelveli," the statement said.

"We appreciate the 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 CEO & MD Praveer Sinha said.