CEAT informed the media that Tata Power has formed a special purpose vehicle (SPV)—TP Akkalkot Renewable Ltd—which will take up the construction, operation and maintenance of the solar power plant.

CEAT will own a 26% stake in the SPV, while Tata power will hold 74%, according to the captive generation rules, it said.

The company said that the power produced would be utilised for captive consumption by CEAT's Bhandup plant. Additionally, the plant is anticipated to generate about 21 million units of energy per year and will yearly offset about 17.43 million kg of carbon dioxide.

Kumar Subbiah, Chief Financial Officer, CEAT, told the media that the partnership with Tata Power for setting up a solar power generation plant in Maharashtra implies their continued commitment towards a shift to sustainable energy.

The company said that the installation of the 10 MW captive solar plant will not only lessen CEAT's dependency on non-renewable energy but will also be a notable milestone in the company's aim towards carbon neutrality.