In its 104th Annual General Meeting (AGM), Tata Power, a leading integrated power company in India, revealed its ambitious plan to invest about Rs 12,000 crore ($1.6 billion) this fiscal year, effectively doubling its capital expenditure (Capex) compared to FY23. The announcement underlines Tata Power’s strategic pivot towards a green and sustainable future, indicating its readiness to spearhead India’s clean energy transition.
Becoming a Round-The-Clock Green Energy Solutions Provider
Natarajan Chandrasekaran, Chairman of Tata Power, pointed out the company’s strong position to capitalize on the sector’s growth opportunities. He emphasized the company’s focus on providing round-the-clock renewable power solutions and developing clean energy technologies such as battery storage and pumped hydro projects.
The company’s bold vision is backed by a proven track record of turning around Discoms, with plans to participate in privatisation opportunities as policy reforms evolve.
Investing in New Technologies and Expanding Renewable Portfolio
Tata Power is exploring novel technologies like offshore wind, green hydrogen, and even small modular nuclear reactors to guarantee a stable, reliable, and consistent supply from renewable power sources. Over the last three years, the company has deployed a Capex of nearly Rs 18,000 crore.
The company’s current renewable portfolio stands at 7 GW, with plans to continue growing. The additional Capex of Rs 12,000 crore for this year signals a commitment to seize new project opportunities in Renewables and T&D businesses.
Customer-Centric Approach: EV Charging Points and Distribution Business Expansion
The power giant plans to extend its customer reach, planning to install over 25,000 EV charging points in the next 5 years, while simultaneously aiming to reach over 40 million consumers in its Distribution Business. With a current 60% market share in EV charging points in India, the company is well-positioned to capitalize on the expanding EV market.
Financial Performance and Dividend Announcement
Reflecting its robust performance in FY23, Tata Power is recommending a dividend of 200%, which is Rs 2 per equity share of Re 1, up from Rs 1.75 per equity share in FY22.
The company’s revenue grew by 32% at Rs 56,033 crore in FY23, attributed to increased sales across distribution companies, higher availability in the Mundra Thermal Plant, and substantial additions to the Renewables portfolio.
Sustainability Commitments: Carbon Net Zero by 2045
As part of the Tata Group’s Project Aalingana, Tata Power is committed to reducing emissions and becoming carbon net zero by 2045. The company has also pledged to become 100% Water Neutral by 2030, with no Net Impact on Biodiversity before 2030 and aims to be a Zero Waste to landfill organization before 2030.
The company’s sustainability strategy is echoed by its active conservation initiatives around its operational areas, demonstrating a holistic commitment to environmental stewardship.
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