It gives me immense pleasure to share with you our performance for the year and perspecti’ on the way forward.
FY 2018-19 was marked by steady growth in power demand, led by an improvement in th overall economic environment in India. Over the next decade, the Indian economy is set to grow at a record pace and a key enabler of this growth will be India’s ability to fulfil its electricity needs. We expect the growth momentum in the Indian power sector to continue, led by government’s infrastructure push and various structural policy reforms, which should augur well for the country’s power demand growth.
Your Company’s consolidated PAT for FY 2019 was at Rs. 2,441 crore compared to Rs. 2,611 crore in the previous year mainly due to lower profits from coal companies. The profitability of coal companies during the year was adversely affected due to domestic market pricing obligation in Indonesia and increased fuel prices. All our subsidiaries and operating divisions have reported robust performance despite sectoral challenges. Our renewable power business added 200 MW in the current year and with another 400 MW in the pipeline. The solar EPC business possesses a healthy order book of Rs. 1,360 crore.
We also launched residential solar rooftop solutions in several cities and installed 65 EV charging points across the country. The Trombay PPA with BEST and Tata Power’s Mumbai discom received an extension for 5 years. Through the Resurgent platform, the Company is in the process of acquiring the 1,980 MW Prayagraj power plant in Uttar Pradesh. Regarding Coastal Gujarat Power Limited, further to the recommendations by a High Powered Committee set up by the Government of Gujarat, we are in discussion with various state governments and state discoms and expect a compensatory tariff for it soon.
The Company continued its exit from non-core investments and raised about Rs. 1,897 crore through disinvestment of Tata Communications Limited and Panatone Finvest Limited. The management is committed to deleveraging the Balance Sheet by divesting the non-core assets. The proceeds from such sale would be re-invested in core areas as well as emerging areas where there is a huge growth opportunity. Our future growth would be in conventional power generation with emphasis on renewable power, power distribution and service-led businesses and this will bring in greater value and help us align with the emerging consumer needs.
During the year, Tata Power redesigned its organization structure to focus on key identified growth areas like Thermal & Hydro Generation, Renewable Generation, Transmission, Distribution and New & Value-Added Businesses including Rooftop Solar, Smart Metering, Micro Grids in rural areas and setting up of Electric Vehicle charging units.
The Company, during its century old existence, has constantly evolved to stay relevant to meet the needs of customers and contribute to nation building. It remains focused on building sustainable value to all our stakeholders while upholding the Tata values.
I would like to take this opportunity to thank our customers, suppliers, shareholders, unions, employees and the Board for their constant support, faith and trust in us, with the belief that it will continue for the times to come.
I also thank the lenders, government executives and officers for their guidance and support to our various ventures.
CEO & MD, Tata Power