Tata Power wins 210-MW solar EPC contract from NTPC

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June 03, 2021 6:00 AM

With this contract addition, the order pipeline of Tata Power Solar stands at about 2,800 MW with an approximate value of Rs 13,000 crore, the company said.

Tata Power’s solar EPC business has shown significant growth in the recent years, with earnings before interest, taxes, depreciation and amortisation (Ebitda) for this business segment increasing more than twice annually to Rs 185 crore at the end of FY21.

Tata Power Solar said on Wednesday it has received a letter of award for an engineering, procurement and construction (EPC) contract to build 210 mega-watt (MW) solar projects for TPC. The total order value of the projects is about Rs 686 crore and the commissioning date for NTPC is set for November 2022.

With this contract addition, the order pipeline of Tata Power Solar stands at about 2,800 MW with an approximate value of Rs 13,000 crore, the company said.
Tata Power’s solar EPC business has shown significant growth in the recent years, with earnings before interest, taxes, depreciation and amortisation (Ebitda) for this business segment increasing more than twice annually to Rs 185 crore at the end of FY21.

Analysts expect Ebitda from the solar EPC segment to rise at 16% compound annual growth rate over FY21-23 to Rs 440 crore. The company had receved new solar EPC orders worth Rs 2,294 crore in Q4FY21 itself.

“Tata Power Solar is the leader in producing solar energy across the country and this (latest order) further validates Tata Power Solar’s excellent execution skills in solar projects,” Praveer Sinha, CEO of Tata Power said. At the end of FY21, Tata Power solar EPC order book capacity was at 2,824 MW, of which 1,100 MW were from NTPC. About 550 MW of Tata Power Solar’s overall EPC orders, worth `2,000 crore, had mandatory domestic content requirement.

Enthused by the market visibility offered through various central government solar schemes with the mandatory domestic content requirement, Tata Power Solar has also recently put on stream additional module and cell manufacturing capacity, taking the total capacity to 1,100 MW, from 700 MW that existed earlier.

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