1. Disclosures made, no more comments: Tata Power on Mistry letter

Disclosures made, no more comments: Tata Power on Mistry letter

Tata Power today said it has always made all relevant disclosures and has no further comments to offer following comments by ousted Tata Group chairman Cyrus Mistry regarding Mundra power project in his letter to Tata Sons board.

By: | Mumbai | Published: October 26, 2016 11:08 PM
Against the backdrop of high profile Tata-Mistry case, stock exchanges have sought clarifications from various group companies, including Tata Power, after purported disclosure of around USD 18-billion possible writedown at the firms. (The Indian Express) Against the backdrop of high profile Tata-Mistry case, stock exchanges have sought clarifications from various group companies, including Tata Power, after purported disclosure of around USD 18-billion possible writedown at the firms. (The Indian Express)

Tata Power today said it has always made all relevant disclosures and has no further comments to offer following comments by ousted Tata Group chairman Cyrus Mistry regarding Mundra power project in his letter to Tata Sons board.

Against the backdrop of high profile Tata-Mistry case, stock exchanges have sought clarifications from various group companies, including Tata Power, after purported disclosure of around USD 18-billion possible writedown at the firms.

In response to clarification sought by BSE, Tata Power said it has always made all relevant disclosures.

With regard to comments purported to have been made by ex-chairman of Tata Sons about the company’s Mundra ultra power project, Tata Power said, “the company has always made all relevant disclosures, as required, and has no further comments to offer”.

In his letter, Mistry had said that Tata Power aggressively bid for the Mundra project based on low-priced Indonesian coal but as regulations changed, “the losses in 2013-14 alone amounted to Rs 1,500 crore”.

“Given that Mundra constitutes Rs 18,000 crore of the capital employed (40 per cent of the overall company’s capital employed) this substantially depresses the return on capital for Tata Power as well as carries the risk of considerable future impairments,” he said.

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