Tata Power’s major investment on renewable energy includes a capex of Rs 1.46 lakh crore over 5 years.

News Mania Desk / Piyal Chatterjee / 9th December 2024

Tata Power is making a substantial push into renewable energy, in line with global trends that will influence both its investment goals and capital expenditure (capex) plans. In a recent media interview, Praveer Sinha, CEO and MD of Tata Power, revealed the company’s ambitious sales target of Rs 1 lakh crore by 2030, with a net profit of Rs 10,000 crore. Sinha announced the objective at the opening of its 4.3 GW solar cell and module production facility at Gangaikondan, Tamil Nadu (near Tirunelveli, roughly 150 kilometers from Madurai).
For FY24, Tata Power recorded a revenue of Rs 61,542 crore, up from Rs 56,033 crore in FY23, and a net profit of Rs 4,280 crore, up from Rs 3,810 crore the previous year. The company plans to treble its profits before interest, taxes, depreciation, and amortization (EBITDA) from the present Rs 14,000-15,000 crore range.

Looking ahead, Tata Power intends to make significant capital investments between FY25 and FY30, with a forecast spend of Rs 1.46 lakh crore, which is 2.5 times greater than the preceding five years. According to an Elara Capital report, the company intends to have renewable energy account for 65% of its energy mix by FY30, boosting green capacity from 6.7 GW to 33 GW. This comprises 10 GW of continuing projects in solar, hydro, hybrid, and pumped storage.  The business also intends to increase its hydro capacity to 5 GW by 2029 by completing two pumped hydro storage projects, Bhivpuri (1,000 MW) and Shirwata (1,800 MW), as well as the 600 MW Khorlochhu hydro plant.

Sinha also discussed Tata Power’s future plans for renewable energy projects, pumped hydro storage plants, and an examination of nuclear energy via small modular reactors (SMRs), albeit this program is still in its early phases.Furthermore, the new 4.3 GW solar module plant is fully booked for orders over the next 15-16 months, representing an investment of Rs 4,300 crore. Tata Power’s stock has risen more than 700% in the last five years and 32% in the last year alone, indicating significant investor confidence.

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