Tata Power Ltd has set a target of achieving a revenue of Rs 1 lakh crore by 2030.
Weeks after the passing of Ratan Tata, the Tata Group companies are setting new goals under the leadership of Noel Tata. Recently, Tata Power Ltd announced its target of achieving revenue of Rs 1 lakh crore by the year 2030. The company also aims to achieve a profit after tax (PAT) of Rs 10,000 crore within the same timeframe. Tata Power CEO and MD Praveer Sinha said on Friday that the company is improving its performance and now with strong fundamentals it is ready to achieve a target of 1 trillion revenue by 2030.
“Consistently for 20 quarters, we have improved our performance. Our fundamentals are strong and we have laid a good foundation. So, now we are ready to leapfrog from our present revenue of about Rs 60,000 crore to crossing Rs 1 lakh crore (1 trillion) by 2030,” Sinha told reporters.
Tata Power planning to scale its EBITDA
Sinha made it clear that the company’s goal is to boost EBITDA from its current range of around Rs 14,000-15,000 crores to over Rs 30,000 crores by 2030. He spoke of their intentions to achieve a PAT over Rs 10,000 crore by 2030, a substantial increase from last year’s profit of Rs 4,200 crores. Besides, Sinha shed light on Tata Power’s heightened capital expenditure, rising from Rs 12,000 crores in FY24 to a projected Rs 21,000 crores in FY25. They will consistently aim for an annual capex of Rs 25,000 crores moving forward, he added.
Tata Power signed MoU with ADB
On the 21st of November, Tata Power inked a Memorandum of Understanding (MoU) with the Asian Development Bank (ADB). The deal worth a hefty sum of $4.25 billion is aimed at obtaining funds for eco-friendly energy ventures. The significant pact came into being during the COP29 event located in Baku, Azerbaijan.
Notably, Tata Power is among the leading integrated power companies in the country. It has a diversified portfolio of 15.5 GW from conventional and renewable energy generation to distribution and transmission.
it has 6.7 GW of clean energy generation, comprising 43 percent of the company’s total capacity.
Largest single-location solar cell and module manufacturing plant in India
This week witnessed Tata Power unveiling their new 4.3 GW cell production facility located in Tirunelveli, Tamil Nadu. This initiative goes hand in hand with the similar-sized module manufacturing plant which started its operations in October 2023 right at the same place. The overall expenditure amassed in setting up the entire cell-to-module production line approximates to Rs 4,300 crore.
Earlier in January, Tata Power committed itself to another deal – a memorandum of understanding with the Tamil Nadu administration. This agreement proposed a total funding to the tune of Rs 70,800 crore levied into the state’s projects. A couple of undisclosed top-ranking officials, however, hinted the actual investment could vary, primarily based on the project’s viability.
Sinha said all of the solar modules will be used for domestic use and right now the company does not have any plan to export its.
In the energy industry, Central Public Sector Units (CPSUs) are mandated to bid out at least 10 gigawatts of renewable projects yearly through fiscal 2028. This opens up opportunities for private corporations, including Tata Power, to join the bidding actions. Beyond the Tirunelveli service centre, Tata Power oversees a more compact manufacturing center in Bengaluru, capable of producing 530 megawatts of cells and 580 megawatts of modules.