Tata Power Company, Strategic Engineering Division (Tata Power SED) the defence production facility of Tata Power Company has pledged substantial investment in Karnataka for defence and security systems.

Tata Power SED has the unique distinction of participating in the country's defence programs through a dedicated R&D set up at Mumbai and a dedicated 10.5 acres defence manufacturing facility at Electronics City, Bengaluru, operational since 1986.

Over the next one year, the division is making an investment of Rs 4.50 billion at its new 50-acre Vemagal facility to create a state-of-the-art integrated digital design-to-manufacturing facility for large systems engineering and integration. This is the largest ongoing investment to create a 'Make in India - Defence' manufacturing asset in the country.

The facility is the largest strategic electronics manufacturing unit approved under the MSIPS program of DeitY, Government of India. Also, the Government of Karnataka (GoK) has been approached for additional land adjacent to the present site at Vemagal under the GoK’s New Industrial policy.

Rahul Chaudhry, CEO, Tata Power SED said, "For the last four decades Tata Power SED has focused on Indigenous Defence R&D and Manufacturing. The Vemagal investment is in line with the company's commitment towards the 'Make in India' initiative and the facility will be dedicated to the national effort of 'Swavalamban' in the strategic defence sector."

Shares of the company gained Rs 2.35, or 4.17%, to settle at Rs 58.65. The total volume of shares traded was 504,996 at the BSE (Tuesday).