Tata Motors has signed a power purchase agreement (PPA) with Welspun Renewable Energy Private Limited to develop an 86 MW wind-solar hybrid project that will supply renewable electricity to four of its manufacturing plants in India.

The project will serve Tata Motors' facilities in Jharkhand, Uttar Pradesh, Uttarakhand, and Karnataka. According to the companies, it is expected to generate 200 million units of electricity annually and reduce carbon dioxide emissions by more than 1.4 lakh tonnes each year.

The power generated from the project will be supplied to the company's commercial vehicle manufacturing plants under a long-term agreement.

Tata Motors said the project supports its target of sourcing 100% renewable electricity under the RE100 initiative by 2030 and reducing emissions from its manufacturing operations.

Vishal Badshah, Vice President – Operations at Tata Motors, said the hybrid project would provide renewable electricity to key manufacturing facilities while lowering emissions from production.

Welspun Renewable Energy Managing Director and Chief Executive Officer Kapil Maheshwari said the agreement reflects increasing demand from industrial companies for renewable power through long-term purchase agreements.

Hybrid renewable energy projects combine wind and solar generation, allowing power production from two sources and improving electricity availability compared with standalone projects.

Large manufacturers in India have increasingly adopted such projects as they seek to reduce dependence on conventional power and meet renewable energy targets.

Tata Motors is India's largest commercial vehicle manufacturer and produces trucks, buses, pick-up vehicles, and utility vehicles. Welspun Renewable Energy develops solar, wind, and hybrid power projects for utility and commercial consumers.

The companies did not disclose the investment value of the project or provide a timeline for its completion.