Essar Power's renewable energy unit and NHPC will develop a 300-megawatt green energy project in southern Andhra Pradesh, the company said, with the parent firm investing about 45 billion rupees ($475 million).
NHPC, India's largest hydropower producer, has been expanding its presence in the solar and wind energy segments.
The project will integrate solar, wind and battery energy storage systems to supply renewable power.
Part of Essar Power's strategy is to build a diversified 5 GW portfolio spanning renewable, thermal and gas-based power generation, Essar said.
It also supports India's efforts to expand renewable energy capacity and strengthen grid reliability amid rising electricity demand, while also aligning with the country's goal of reaching 500 GW of renewable energy capacity by 2030.