Tata Power to Invest ₹60,000 Cr, Focus on Renewables

Tata Power is set to invest Rs 60,000 crore over the next three years, with nearly half allocated to the renewables sector. The company, engaged in power generation, transmission, and distribution, will refrain from adding any new coal-based thermal power capacity, according to its chief executive and managing director, Praveer Sinha, who spoke to reporters here.

The investment plan includes up to Rs 15,000 crore for FY24, increasing to Rs 20,000 crore in FY25, Rs 22,000 crore in FY26, and Rs 23,000 crore in FY27, culminating in a total capital expenditure of Rs 60,000 crore by FY27.

In addition to the previously announced two hydel pumped storage projects (PSP) with a capacity of 2,800 MW and an investment of Rs 13,000 crore, the company has identified three more similar projects that could generate up to 9,000 MW of power in close proximity, Sinha noted.

Emphasizing that brownfield expansions like PSPs are more financially advantageous, Sinha explained that such expansions require approximately Rs 5 crore of investment per megawatt, utilizing existing assets to enhance power production, while a greenfield hydel project could cost up to Rs 8 crore.

The three sites identified for their PSP potential are Potalpali, Kataldhara, and Nenavali in the Raigad district, according to the company.

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Interestingly, Sinha mentioned that the company has yet to sign power-purchase agreements for the two PSPs, including one located here and another at the nearby Shirwata, which involves an investment of Rs 13,000 crore, and the destination for the 2,800 MW of power to be generated remains uncertain.

However, he suggested that bundling the project with solar and wind capacity could facilitate financing.