Tata Power has earmarked a capex of Rs 12,000 crore for the current financial year, nearly double of that in FY23, of which nearly 60% would be utilised for renewables. This includes a Rs 4,500 crore spend to set up a solar cell and module manufacturing facility in Tuticorin, according to company’s MD & CEO Praveer Sinha .
“Of the total capex, nearly 60% would be for renewables, 30% for transmission and distribution (T&D) and the remaining 10% for generation and others. This will further rise in FY25 also as we are a growing company,” Sinha told FE in an interaction.
The company had spent Rs 6,500 crore as capex in last year. Tata Power has a total installed capacity of 14,294 MW, with 62% of it thermal and the rest renewable.
Further, the company is also planning to expand the number of its electric vehicle (EV) public charging points to over 25,000 in the next five years. At present, the Tata Group firm has installed 4,400 EV chargers in the public space, he said.
Tata Power has already crossed the milestone of 50,000 home chargers, 4,370 public and semi-public charging points and over 280 bus charging points across 390 cities.
The company would also look at bidding for Rs 75,000 crore worth of renewable energy transmission projects coming up for auction.
“Our criteria, while bidding for these projects, would be it meets our requirement of returns,” Sinha added.
Tata Power is also eyeing 40 cities to start power distribution as and when opportunities open up. The company is also setting up a 4 GW solar cell and module manufacturing facility in Tuticorin, with the work on the module expected to start in October and that of solar cells next year. The company would invest Rs 4,500 crore in this facility, he added.
Separately, Tata Power posted a 22.4% rise in consolidated net profit at Rs 972.49 crore for the first quarter ended June 30, driven by an all-round growth across businesses.
For Q1, the company reported a 22.4% rise in consolidated net profit at Rs 972.49 crore, driven by an all-round growth across businesses. In comparison, the company had posted a net profit of Rs 794.60 crore for the same period of last financial year.
Commenting on the results, he said, “We have delivered a 15th consecutive quarter of PAT growth on the back of strong performance across all business clusters.
“There was growth across all our businesses – generation business, Mundra plant and renewables – during the quarter.”
During the quarter under, its revenue from operations rose to Rs 15,213.29 crore from Rs 14,495.48 crore recorded during the same year-ago quarter. The company’s consolidated Ebitda was up by 43% at Rs 3,005 crore versus Rs 2,107 crore in Q1 of FY23.