Tata Power Expansion Across Abroad

Tata Power is one of the largest and 100 year old company with significant international presence. The company has presence in wind, solar, hydro and geothermal energy space. It wants to generate 26000 MW power by 2020.

Tata Power is in process to concentrate on developing countries like Georgia, Zambia, South Africa where progress is more than satisfactory. The company has Itezhi Tezhi Hydro project in Zambia with capacity of 120 MW. It has 50 per cent JV with Zambian utility ZESCO and total project cost is USD 250 million. Tata Power is expected this project to be commissioned by December 2015. The company has already completed 75 per cent work for the project.

The company has South Africa Wind project with the capacity of 229 MW. It has 50 per cent JV with Exxaro. The total cost of the project is Rs 15.75 billion. Tata Power completed 50 per cent of work for this wind project. The company has planned to commission project in FY 2017.

Tata Power has a Georgia Hydro project in Georgia with capacity of 185 MW. The company has 40 per cent stake in the project along with 40 per cent JV with Clean Energy and 20 per cent JV with IFC. The cost is USD 404 million for first phase. Tata Power concluded that 40 per cent of work is done. The company is expecting for commissioning the project in FY 2017. It has got Clean Development Mechanism (CDM) approval for second phase of 150 MW project.

In FY15, Tata Power commissioned Dagacchu Hydro project in Bhutan with capacity of 126 MW. The Druk Green Power Corporation has 74 per cent stake and remaining 26 per cent with Tata Power in the project.

Revenue of Tata Power declined by 3.6 per cent to Rs 34367 crore in FY15 compared to previous financial year. The company's net profit was Rs 168 crore in FY15 against Rs 260 crore loss in FY14. It managed to reduce its debt by 8 per cent and remained at Rs 35099 crore in FY15.

Tata Power is expecting about 534 MW overseas projects commissioning by FY17 and will contribute around 8 per cent to EPS by FY18. The company has also strategic investments in foreign energy markets such as Australia, Indonesia, Singapore, Botswana and Namibia. Tata Power signed MoU with Siberian Coal Energy Company (SUEK) to develop opportunities in Energy sector in Russia. Tata Power is looking to refinance Rs 10000 crore Mundra UMPP under RBI's 5/25 scheme.