Company Announces Ambitious Renewable Expansion Plans at 105th AGM
Tata Power has outlined its commitment to lead the country’s green energy transition at its 105th AGM. Chairman Natarajan Chandrasekaran announced a significant capital expenditure (capex) of ₹20,000 crore for the 2024-25 financial year, with a major focus on renewable energy expansion.
This increased investment builds on the ₹12,000 crore spent in the previous year and signifies Tata Power’s ambitious plans.
A substantial portion of the new allocation will target accelerating the company’s renewable energy portfolio, with a balanced investment in its existing transmission and distribution businesses.
Chandrasekaran also indicated the company’s interest in exploring participation in Small Modular Nuclear Reactors, subject to government approval. Additionally, Tata Power is eyeing new distribution expansion opportunities in other Indian states as they arise.
Key Highlights from the AGM:
Energy Transition Leadership: Tata Power positions itself as a frontrunner in India’s green energy shift, emphasizing the provision of 24/7 clean power solutions, particularly for commercial and industrial consumers.
Rooftop Solar Expansion: The company aims for aggressive growth in rooftop solar installations, leveraging the government’s PM Surya Ghar Yojana to capture a larger market share.
Consumer Focus: Tata Power plans to expand its customer base to 50 million consumers through distribution business expansion, up from the current 12.5 million.
Performance and Future Plans:
Consolidated revenue witnessed a 10% rise to ₹61,542 crore, with Profit After Tax (PAT) increasing by 12% to ₹4,280 crore.
The company maintained a net debt-to-equity ratio below 1, reflecting its commitment to financial prudence alongside growth plans.
Renewable Energy: Tata Power aims for a 15 GW clean energy portfolio within five years, building upon its existing 9 GW capacity. This growth will be fueled by both ongoing and new projects.
Manufacturing: The company has established a new 4.3 GW solar cell and module manufacturing plant in Tamil Nadu.
EV Charging: Tata Power maintains its leadership position with over 5,500 public and captive chargers installed across 530+ cities. Additionally, over 86,000 home chargers have been deployed.
Rooftop Solar: The company is well-positioned to capitalize on rooftop solar installations through its “Ghar Ghar Solar” initiative aligned with the PM Surya Ghar Yojana. Over 2 GW of rooftop projects have already been completed, with an order book valued at ₹2,800 crore.
Reflecting its strong performance, the Board of Directors recommended a dividend of ₹2 per equity share.