Tata Power, in its 104th Annual General Meeting, announced its plans to double its projects expenditure (projex) to Rs 12,000 crore for the current fiscal year. The increased capex is aimed at supporting the company’s growth plans, according to Natarajan Chandrasekaran, Chairman of Tata Power. The investments will primarily focus on renewable projects, distribution and transmission businesses in Odisha, Delhi, and Mumbai, as well as the upcoming 4 GW manufacturing plant. Chandrasekaran emphasized that the company intends to fund these projects primarily through internal accruals and available cash reserves.
The manufacturing plant in Tamil Nadu, which includes a 4 GW cell and module facility, is progressing well, with the module line expected to be ready by October 2023 and the cell line by the end of the year.
Tata Power also expressed interest in participating in the privatization of distribution companies (discoms), leveraging its successful track record in turning around such entities. The company aims to become an Environmental, Social, and Governance (ESG) benchmark in the power sector, outlining goals to achieve carbon neutrality by 2045, water neutrality by 2030, no net impact on biodiversity before 2030, and zero waste to landfill before 2030.
Furthermore, Tata Power has increased its total installed power generation capacity to 14.1 GW, with a focus on renewable sources. The operational renewable capacity has reached 3.9 GW, and with ongoing projects, the clean and green energy capacity is expected to account for close to 50% of the total installed capacity. In the solar rooftop segment, the company has established a network of 450 dealers across 275 districts and experienced significant revenue growth. Tata Power has also made substantial strides in the electric vehicle charging market, with the installation of 4,000 public and captive chargers and the sale of nearly 40,000 home chargers. The company plans to expand its charging network through strategic partnerships and leverage its cloud-based technology platform, targeting highways, fuel pumps, and high traffic areas.