Tata Power is set to significantly bolster its capital expenditure (capex) in the upcoming financial year, with an investment of Rs 20,000 crore. This substantial allocation was announced by the company’s Chairman, N Chandrasekaran, during the 105th Annual General Meeting (AGM). The primary focus of this investment will be on accelerating the expansion of Tata Power’s renewable energy portfolio, alongside strategic enhancements in its transmission and distribution segments.
The planned investment for FY25 marks a considerable increase from the Rs 12,000 crore spent in FY24, underlining Tata Power’s commitment to expanding its sustainable energy footprint. Chandrasekaran, who also serves as Chairman of Tata Sons, highlighted the company’s ambitious goal of reaching a 15 GW clean energy portfolio within the next five years, up from the current 9 GW capacity derived from both existing and ongoing projects. Additionally, Tata Power is exploring potential participation in small modular nuclear reactors, contingent upon receiving the necessary government approvals. The company is also eyeing new distribution expansion opportunities across various states, aiming to scale its consumer base to 50 million from the present 12.5 million.
In alignment with its renewable energy objectives, Tata Power is establishing a 4.3 GW solar cell and module manufacturing facility in Tamil Nadu. This development is part of the company’s broader strategy to strengthen its position in the solar energy market. Complementing this, Tata Power’s ‘Ghar Ghar Solar’ initiative, under the PM Surya Ghar Yojana, aims to solarise residential homes. The company has already executed over 2 GW of rooftop solar projects and boasts an order book worth Rs 2,800 crore. In the electric vehicle (EV) charging domain, Tata Power continues to make significant strides. The company has deployed over 5,500 public and captive chargers across more than 530 cities and has installed over 86,000 home chargers. This expansion supports the growing demand for EV infrastructure in India, reinforcing Tata Power’s role in the transition to cleaner energy.
During the AGM, Chandrasekaran also announced that the Board of Directors has recommended a dividend of Rs 2 per equity share, reflecting the company’s robust financial performance and commitment to delivering shareholder value. Tata Power’s aggressive capex plan for FY25 underscores its strategic vision to lead India’s energy sector transition. By investing heavily in renewable energy and supporting infrastructure, Tata Power is positioning itself at the forefront of the nation’s sustainable energy future.
