Tata Power Company Ltd will invest Rs 20,000 crore capex in FY25, N Chandrasekaran, Chairman, Tata Power, said at its 105th Annual General Meeting (AGM) of shareholders for the Financial Year 2023-24.
Chandrasekaran, in his speech to shareholders, said the company looks to fund its capital expenditure plans through debt and cash-flow generated from its multiple businesses.
“Tata Power plans to invest Rs 20,000 crore capex in FY25. This is over and above the Rs 12,000 crore invested in FY24. A large part of this will be towards accelerating the Company’s renewable energy portfolio and balance towards Transmission and distribution businesses. The company will also explore participation in Small Modular Nuclear Reactors, once the Government gives necessary permissions apart from new distribution expansion opportunities in other states, as and when these opportunities arise in line with Government policies,” said Chandrasekaran, Chairman, Tata Power.
He noted: “The company will generate a lot of operating cash flow primarily because we are growing in all segments. The company for a long time had the weight of the underperforming or loss-making Mundra which was weighing down the company, and while that problem is intermittently getting solved.”
As of March, Tata Power’s consolidated debt was Rs 49,480 crore and it has a long-term capex plan of Rs 60,000 crore spread over the next few years.
Other focus areas
> Energy Transition Leadership: The company noted that it is well positioned to lead India’s green energy shift with focus on providing round the clock renewable energy especially to Commercial and Industrial consumers> Rooftop Solar Expansion: Aggressive growth in rooftop solar, aiming for increased market share on back of PM Surya Ghar Yojana.> Consumer Focus: Targeting 50 million consumers through distribution business expansion, from the present 12.5 million consumers.
In terms of new business, Chandrasekaran added, “(In nuclear power) the only area we will be open to is what is called the small modular reactors, as and when the opportunities come and the government allows the company to look at entering that field.” He further said, “The company is also evaluating multiple storage technologies, including battery.”
Tracking the company’s transformation over the last few years, Chandrasekaran said, “In the last four or five years, the company’s strategy has significantly changed. It has now become a multi-segment integrated power company. The Tata Power Company now should be looked at as industrial as well as consumer.”
Future plans
The company aims to achieve a 15 GW clean energy portfolio within a span of 5 years, building upon the current 9 GW capacity. This expansion will encompass both existing projects and those currently in progress. In line with this growth strategy, the company is establishing a new 4.3 GW solar cell and module manufacturing plant in Tamil Nadu.
Furthermore, the company is taking significant strides in the electric vehicle (EV) charging sector, with a presence in over 530 cities through 5,500 public and captive chargers. Additionally, over 86,000 home chargers have been installed, reinforcing the company’s commitment to sustainable energy solutions and infrastructure development.
It added that it is fully geared to solarize homes through its ‘Ghar Ghar Solar’ initiative under PM Surya Ghar Yojana. Executed 2GW+ rooftop projects so far and has an order book of Rs 2,800 crore.
Shares of Tata Power closed at Rs 436.90, down by 0.52%.
