Tata Power to Invest Rs 20,000 Crore in Renewable Energy and Infrastructure

Tata Power, under the Chairman, N. Chandrasekaran,  during the company’s 105th Annual General Meeting (AGM), has announced a major capital expenditure (capex) plan of Rs.20,000 crore for FY25 which comes in addition to the Rs.12,000 crore invested in FY24. 

Renewable Energy

A large portion of the capex will be directed towards accelerating Tata Power’s renewable energy portfolio. The company aims to expand its clean energy capacity from the current 9 GW to 15 GW over the next five years and this expansion will include both existing and ongoing projects.

Transmission & Distribution 

The remaining capex will be allocated to the company’s transmission and distribution operations as  Tata Power is also planning to explore opportunities in small modular nuclear reactors, pending government permissions, and expand its distribution network into other states. Currently serving 12.5 million consumers, the company has plans to increase this number to 50 million in the coming years.

Solar Initiatives & EV Charging 

In addition to renewable energy expansion, Tata Power is now focusing on solar energy through initiatives like the ‘Ghar Ghar Solar’ program under the PM Surya Ghar Yojana. The company has already executed over 2 GW of rooftop solar projects and has an order book worth Rs.2,800 crore. A new 4.3 GW solar cell and module manufacturing plant is also being set up in Tamil Nadu.

In the electric vehicle (EV) charging sector, Tata Power has established a network of 5,500 public and captive chargers across more than 530 cities and installed over 86,000 home chargers.

Financial Strategy

The funding for this extensive capex plan will be sourced from a combination of debt and operating cash flow. As of March, Tata Power’s consolidated debt stood at Rs.49,480 crore. The company has a long-term capex plan of Rs.60,000 crore over the next few years.

Conclusion: In conclusion, Tata Power is positioning well for the green energy shift, with plans to enhance its renewable energy portfolio, expand its consumer base, and establish a wide EV charging infrastructure in the coming years.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.