Besides, the leading private power utility has proposed increasing its borrowing limit to Rs 27,000 crore.
Approval has been sought for raising up to Rs 7,000 crore through issue of non-convertible debentures (NCDs) on private placement basis, according to notice sent out to shareholders for company's annual general meeting to be held on August 13.
The approval would be valid for a period of one year and the amount would be within the overall borrowing limits.
As per the notice, NCDs, issued on private placement basis, are a significant source of borrowings for the company. "The borrowings of the company presently aggregate approximately Rs 11,000 crore," it added.
Tata Power has also sought permission to increase its borrowing limit to Rs 27,000 crore in order to meet financial requirements for projects as well as other corporate needs.
"In view of its strategic intent to be the largest integrated power company in India, the company has aggressive growth plans in the fields of generation, transmission, distribution and fuel securitisation," the notice said.
Noting that it is in the process of executing various thermal, hydro and renewable energy projects, Tata Power said these works would entail high capital expenditure, which needs to be financed by debt and equity.
"The company is also required to refinance Foreign Currency Convertible Bonds of Rs 2,000 crore, maturing in November 2014, and extend support to Coastal Gujarat Power Ltd, a wholly-owned subsidiary," the notice added.
According to the company, the proposed borrowings might have to be secured by way of mortgages, charges and hypothecations on its movable/immovable properties.
"As the documents to be executed by, with, or in favour of, the lender/parties may contain the power to take over the management and concern of the company in certain events, it is necessary for the members to pass a resolution for creation of mortgages, charges and hypothecation to secure such borrowings," it noted.
Since security to be provided is usually 1.25 times the amount borrowed, it is proposed to seek members' consent for creation of charges up to Rs 33,750 crore, the notice said.
Tata Power has an installed electricity generation capacity of more than 8,500 MW.
Tata Power has also sought shareholders' approval for hiking the maximum basic salary of Managing Director Anil Sardana to Rs 9,50,000 per month for the remainder of his term up to January 31, 2016 with proportionate increase in the benefits related to his salary.
The increase, once approved, would be effective from April 1, 2014.
During the company's annual general meeting in August 2011, shareholders had given nod appointment and terms of remuneration of Sardana as Managing Director. A salary up to Rs 6,50,000 per month, with authority to the board to fix his salary within the above mentioned scale was also approved at that time.
The company has also sought permission from shareholders for appointment of directors and branch auditors, among others.