Tata Power Plans Rs 20,000 Cr Capex in FY24, Focus on Renewables
By Rediff Money Desk, New Delhi May 08, 2024 18:56
Tata Power plans a 66% higher capex of Rs 20,000 crore in FY24, with 50% allocated to renewable energy projects, reflecting its commitment to energy transition and India's net-zero goals.
![Tata Power Plans Rs 20,000 Cr Capex in FY24, Focus on Renewables](https://im.rediff.com/money/2016/jun/08energy.jpg)
New Delhi, May 8 (PTI) Tata Power has planned a 66 per cent higher capital expenditure of Rs 20,000 crore in this fiscal compared to a year ago, which will mainly focus on projects supporting energy transition and India's net-zero emission target by 2070.
During the year ended March 2024, the capex (capital expenditure) was around Rs 12,000 crore, the company's CEO Praveer Sinha said during a post earnings conference call.
"This year we are targeting to spend around Rs 20,000 crore," he said in reply to a question on company's planned capex.
Sharing the breakup of the investment plant, Sinha said about 50 per cent will be on renewables (projects). The remaining will be mix of transmission, distribution and conventional projects.
The company will fund the capex through internal accruals and some debt, Sinha said.
Tata Power on Wednesday posted an 11 per cent rise in its consolidated net profit to Rs 1,046 crore in the March 2024 quarter compared to the year-ago period, mainly on the back of higher revenues.
The consolidated profit stood at Rs 939 crore in the quarter ended on March 31, 2023, a BSE filing showed.
In the renewable energy segment, Tata Power's 4.3 GW Cell & Module manufacturing facility in Tirunelveli, Tamil Nadu has commenced production and commercially produced around 130 MW of modules.
During FY24, the company won two projects worth Rs 2,300 crore under Tariff-Based Competitive Bidding (TBCB) process - the Interstate Transmission System (ISTS) - Bikaner III Neemrana II Transmission Ltd and the Intrastate Transmission Scheme in Uttar Pradesh through SPV Jalpura Khurja Power Transmission Ltd.
The company is on an accelerated growth trajectory of transitioning to green energy and aiming for around 70 per cent of capacity from non-fossil-based fuels by 2030.
As of March 31, 2024, the company has 4.5 GW of renewable capacity operational and another 5.5 GW of projects under implementation, taking the total green energy portfolio to over 10 GW.
The company has 6,277 Ckm (circuit kilometres) of transmission lines portfolio including 1,651 Ckm capacity in pipeline.
During the year ended March 2024, the capex (capital expenditure) was around Rs 12,000 crore, the company's CEO Praveer Sinha said during a post earnings conference call.
"This year we are targeting to spend around Rs 20,000 crore," he said in reply to a question on company's planned capex.
Sharing the breakup of the investment plant, Sinha said about 50 per cent will be on renewables (projects). The remaining will be mix of transmission, distribution and conventional projects.
The company will fund the capex through internal accruals and some debt, Sinha said.
Tata Power on Wednesday posted an 11 per cent rise in its consolidated net profit to Rs 1,046 crore in the March 2024 quarter compared to the year-ago period, mainly on the back of higher revenues.
The consolidated profit stood at Rs 939 crore in the quarter ended on March 31, 2023, a BSE filing showed.
In the renewable energy segment, Tata Power's 4.3 GW Cell & Module manufacturing facility in Tirunelveli, Tamil Nadu has commenced production and commercially produced around 130 MW of modules.
During FY24, the company won two projects worth Rs 2,300 crore under Tariff-Based Competitive Bidding (TBCB) process - the Interstate Transmission System (ISTS) - Bikaner III Neemrana II Transmission Ltd and the Intrastate Transmission Scheme in Uttar Pradesh through SPV Jalpura Khurja Power Transmission Ltd.
The company is on an accelerated growth trajectory of transitioning to green energy and aiming for around 70 per cent of capacity from non-fossil-based fuels by 2030.
As of March 31, 2024, the company has 4.5 GW of renewable capacity operational and another 5.5 GW of projects under implementation, taking the total green energy portfolio to over 10 GW.
The company has 6,277 Ckm (circuit kilometres) of transmission lines portfolio including 1,651 Ckm capacity in pipeline.
Source: PTI
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