Tata Power, in its efforts to achieve its growth targets, has announced plans to invest around Rs 12,000 crore, doubling its capital expenditure from FY23. This investment will be directed towards various projects, including a 4 GW manufacturing plant, ongoing renewable projects, transmission and distribution businesses in Odisha, Delhi, and Mumbai, and exploring new opportunities. The funding for these projects will primarily come from internal accruals and cash reserves.”
The Chairman of Tata Power, Natarajan Chandrasekaran, assured shareholders that the 4 GW cell and module manufacturing plant in Tamil Nadu is progressing well and is expected to be operational by October 2023. Furthermore, Tata Power aims to expand its presence in the power distribution business and participate in the privatization of discoms utilities. The company is committed to becoming an ESG (Environmental, Social, and Governance) benchmark in the power sector by achieving key goals, such as carbon neutrality, water neutrality, biodiversity conservation, and zero waste to landfill.
The directors have recommended a dividend of 200 percent, reflecting the company’s improved performance across its various business segments. Tata Power witnessed a consolidated revenue growth of 32 percent in FY22, reaching Rs 56,033 crore. The consolidated net profit also increased by 77 percent to Rs 3,810 crore. It is worth noting that the renewable sector has received substantial investments globally, with USD 500 billion invested out of a total of USD 1.11 trillion in low-carbon energy investments in 2022.
Despite the significant growth in India’s power demand, the per capita power consumption in the country remains one of the lowest globally. Tata Power aims to address this challenge by focusing on renewable energy and targeting 500 GW of non-fossil installed capacity by 2030. Unlike other major economies, India is using renewable energy to meet its power demand without substituting thermal power. With its position as a leading integrated power player, Tata Power is well-positioned to capitalize on the growth opportunities in the sector.
Tata Power’s solar rooftop business has also achieved remarkable success, with a strong network of dealers across districts and significant revenue growth. The company continues to serve over 12 million customers, making it the largest private power distribution utility in India. The conventional power plants of Tata Power have maintained optimal capacity, ensuring reliable power supply during the energy transition period.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
