Tata Power hopes to reduce its net debt to below Rs 25,000 crore in FY21 from Rs 43,000 crore in FY20 by closing the transactions worked over the past two years. The firm is also adopting an asset-light model to reduce the count of subsidiaries from 90 to 40 that will simplify governance structure and reduce the finance cost of subsidiaries like CGPL. Praveer Sinha, CEO & managing director of Tata Power, tells Vikas Srivastava that its target of doubling revenue and tripling profits over the next five years is a conservative estimate, given the opportunities in the distribution, transmission and renewables business over these years. Edited Excerpts:
Do you think growth targets to double your revenue by 2025 are ambitious given the tepid demand and competition?
Our estimates are very conservative since we have been preparing for it for the last 12-18 months, and many of these things have already been incubated. I will give you two examples: Two years back, in the rooftop solar segment we were generating revenues of Rs 40 crore, while this year we will have revenues of Rs 500 crore from this segment.
