Tata Power is looking to ramp up its capital expenditure significantly, aiming for a 66% increase  YoY to Rs 20,000 crore in the current fiscal year. The focus of this expenditure will primarily be on projects supporting India’s energy transition and its ambitious net-zero emission target by 2070. 

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Tata Power, based in New Delhi, is ramping up its capital expenditure significantly, aiming for a 66% increase to Rs 20,000 crore in the current fiscal year compared to the previous one. The focus of this expenditure will primarily be on projects supporting India’s energy transition and its ambitious net-zero emission target by 2070. During the fiscal year ending March 2024, the company’s capital expenditure stood at approximately Rs 12,000 crore, as stated by CEO Praveer Sinha during a post-earnings conference call. Sinha highlighted that around 50% of the planned investment will be allocated to renewable energy projects, with the remainder divided among transmission, distribution, and conventional projects. The funding for this capital expenditure will come from internal accruals and some debt, according to Sinha.

Tata Power reported an 11% increase in its consolidated net profit to Rs 1,046 crore in the March 2024 quarter compared to the same period last year, driven by higher revenues. Notably, the company’s renewable energy segment saw progress with the commencement of production at its 4.3 GW Cell & Module manufacturing facility in Tirunelveli, Tamil Nadu, which has already commercially produced around 130 MW of modules. Additionally, during the fiscal year 2023-24, Tata Power secured two projects worth Rs 2,300 crore under the Tariff-Based Competitive Bidding (TBCB) process, emphasizing its commitment to expanding its transmission infrastructure.

Looking ahead, Tata Power is steadfast on its path of accelerated growth, aiming to transition to green energy and achieve around 70% of its capacity from non-fossil-based fuels by 2030. This strategic shift aligns with India’s broader objectives of reducing carbon emissions and promoting sustainable development.