Tata Power's FY25 Capex To Be 66% Higher At Rs 20,000 Crore

Tata Power Co. plans to increase its capital expenditure for FY25 to Rs 20,000 crore, according to Chief Executive Officer and Managing Director Praveer Sinha. This is 66.67% higher than Rs 12,000 crore spent by the company in fiscal 2024.

Nearly 50% of the total capex, or Rs 10,000 crore, will be deployed towards the renewables portfolio.

The balance will be utilised for other sectors, including allocation to the existing generation portfolio where Tata Power will start work in the pump hydro storage space.

The company will also complete the fuel gas desulphurisation projects needed for its coal based plants. A part of the capex will also be used for transmission projects like the one in Mumbai. Another part of it will be used for the company's distribution business in Delhi, Mumbai and Odisha.

Most of the guided capex will be funded majorly by internal accruals and partly by taking on more debt, Sinha said.

Tata Power's net debt as of FY24 stood at Rs 38,125 crore, up 7.91% compared to the previous year. The company will see an uptick in net debt in FY25. Despite the increase in debt, the company is confident in maintaining healthier debt to equity parameters, especially better than the general norm for infrastructure projects, the top executive said.

The company's consolidated cash and cash equivalents as of FY24 stood at Rs 10,630 crore.

The 4 gigawatt solar module plant is now fully operational and the company supplied nearly 150 megawatts of solar modules in March 2024, Sinha said. He expects the company to see full visibility on the solar module plant in FY25.

Around 3 GW of the module capacity will be used to supply internal group captive projects and around 1 GW of the module capacity will be deployed for the sale of modules.

Sinha also noted that the solar cell plant will be operational in June 2024. The company expects the cell plant to take 2-3 months to stabilise, thereby reaching full potential by September 2024.