Tata Power to Invest Rs 20,000 Crore in FY25: N Chandrasekaran
Tata Power would invest Rs 20,000 crore in the current financial year on its thrust to enhance its portfolio of renewable energy and expand transmission and distribution businesses, said Tata Group Chairman Natarajan Chandrasekaran during the company's 105th annual general meeting held virtually.
"Tata Power would look to invest Rs 20,000 crore as capex in FY25. This will be over and above the Rs 12,000 crore invested in FY24", Chandrasekaran said. He added that most of this investment would go towards the company's 'fast-tracked' renewable energy initiatives and a small portion towards transmission and distribution. The Company further would be looking at small modular nuclear reactors, subject to government approvals, and new opportunities in other states for distribution.
He emphasized Tata Power's strategic positioning to lead India's transition to green energy, particularly in the supply of round-the-clock renewable energy to commercial and industrial consumers. There are also major growth plans chalked out in Rooftop Solar, riding on PM Surya Ghar Yojana to gain market share.
Distribution-wise, Tata Power looks to boost its consumer base from 12.5 million currently to 50 million in number. The company envisions a clean energy portfolio of 15 GW within the next five years from the existing 9 GW currently, out of which several projects are ongoing and some are at the proposal stage.
Noting the performance, the Board of Directors of the company recommended a dividend of Rs. 2 per equity share of Re.1.
The stock of Tata Power, however, shed 0.52% to close at Rs 436.90 on the BSE despite the optimistic forecast.
Thus, Tata Power's massive investment plan reflects its continuous efforts toward promoting sustainable growth while increasing its presence in India's energy sector, thus supporting the country's green energy ambition.