Tata Power to scale up generation capacity to 18,000 MW by 2022
Tata Power today released its strategic intent until the year 2022, which lays emphasis on scaling up the generation capacity and value-added businesses including services and trading. By 2022, the company plans to increase the generation capacity from 8,750 MW to 18,000 MW with 20-25% from clean and green sources, 4,000 MW distribution and decentralised distribution of electricity generation and 10x growth in value-added businesses.
According to the company, the potential future growth areas in India include 1,600 MW coastal Maharashtra, Dehrand project, 380 MW Dugar hydroelectric JV project, 1,980 MW Tiruldih power project.
During 2014-15, the company has completed acquisition and possession of private land for the Dehrand project. All statutory approvals required to start the project are in place. Further, clearance by Government of Maharashtra for transfer of government land to Maharashtra Industrial Development Corporation for Tata Power is in the final stages.
For Dugar hydro project, the site investigations and development of the Detailed Project Report are under progress through its SPV, Dugar Hydro Power Limited.
Further, the company has acquired around 40% of the required land and obtained water allocation for the Tiruldih project. Environment clearance is being discussed at the Expert Appraisal Committee (EAC) in the Ministry of Environment & Forests (MoEF). Post de-allocation of the Tubed coal block, further action on environment clearance is contingent on obtaining a firm coal linkage for the project.
Anil Sardana, CEO & MD, Tata Power said: “We are evaluating various opportunities for providing management and technical advisory services in Generation and Distribution businesses and are focusing on the consumer end of the value chain through distribution network development and power supply business. While the Indian market continues to remain the primary focus of business, we have started making investments in projects in select international geographies to diversify our portfolio further. In line with our international strategy, we are continuing to evaluate investment opportunities in Africa, Turkey & Middle East, South East Asia and the SAARC region.”
In renewable energy, the company’s arm Tata Power Renewable Energy Limited is developing over 200 MW of wind power projects in India. It has acquired land in the state of Gujarat and in Rajasthan for future solar based projects.
As far as company’s plans abroad are concerned, the company’s JV in South Africa, Cennergi Limited, achieved financial closure of 134.4 MW Amakhala Emoyeni Wind Farm and 95.17 MW Tsitsikamma Community Wind Farm in May 2013 and June 2013 respectively. The construction of both projects is progressing on schedule.
Moreover, the company entered into a share purchase agreement and acquired 50% shares held by Tata Africa Holdings in the 120 MW Itezhi Tezhi Hydro Power Project in Zambia.
