Tata Power, a stalwart in India’s power sector, has announced a monumental surge in its capital expenditure (capex) for the fiscal year 2024-25.
The company, under the stewardship of CEO Praveer Sinha, is poised to channel a staggering Rs 20,000 crore into various projects, marking a remarkable 66% escalation from the preceding fiscal’s capex, which stood at approximately Rs 12,000 crore. The focal point of this substantial investment injection lies in catalysing the energy transition agenda while aligning with India’s ambitious target of achieving net-zero emissions by 2070. Tata Power’s capex breakdown reveals a strategic allocation, with 50% earmarked for renewable energy projects, reflecting the company’s resolute stance in amplifying its green energy footprint. The remainder of the investment corpus will be channeled into a diverse portfolio encompassing transmission, distribution, and conventional power ventures.
Financing for this monumental capex surge will primarily be sourced from internal accruals, supplemented by judicious debt utilisation, as articulated by Sinha. This prudent financial strategy underscores Tata Power’s commitment to maintaining fiscal robustness while driving ambitious growth agendas. The fiscal year 2023-24 witnessed Tata Power’s consolidated net profit ascend by an impressive 11% to Rs 1,046 crore, attributed largely to buoyant revenue streams. This financial resilience underscores the company’s adeptness in navigating dynamic market landscapes while capitalising on emerging opportunities.
Tata Power’s formidable presence in the renewable energy domain is further underscored by the operationalisation of its 4.3 GW Cell & Module manufacturing facility in Tamil Nadu, complemented by the successful commercial production of approximately 130 MW of modules. Additionally, the company’s recent victories in securing two lucrative projects worth Rs 2,300 crore under the Tariff-Based Competitive Bidding (TBCB) process underscore its prowess in the renewable energy arena.
As of March 31, 2024, Tata Power boasts an impressive renewable capacity of 4.5 GW in operation, with an additional 5.5 GW of projects under implementation, propelling its total green energy portfolio to over 10 GW. Furthermore, the company’s robust transmission infrastructure, encompassing 6,277 Ckm of transmission lines, including 1,651 Ckm capacity in the pipeline, underscores its formidable position in India’s power landscape. With an accelerated growth trajectory aimed at achieving around 70% of its capacity from non-fossil-based fuels by 2030, Tata Power emerges as a pivotal player in India’s transition towards a sustainable energy future.
