Dr. Praveer Sinha, Managing Director (MD) and CEO - Tata Power
Tata Power will set up a 4 gigawatt (GW) manufacturing facility of cell and modules with an investment of nearly Rs 3,400 crore in the next 18 months, Dr Praveer Sinha, Managing Director (MD) and CEO - Tata Power, said in an exclusive interview to CNBC TV-18.
Tata Power is targeting to add 2GW of utility scale renewable projects every year, which requires nearly Rs 8,000-10,000 crore of investment, according to the CEO. ''The nature of the funding for renewables is still under finalisation, but we expect it to close by the end of the current quarter/financial year,'' said Sinha.
With the government's Rs 19,500-crore production-linked incentive (PLI) scheme and state incentives, the project is attractive and most of the investment will be used within the company's utility scales, including rooftop solar modules, EPC, explained Sinha.
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Outlining the company's other ongoing projects, Sinha explained that Tata Power is also involved in 'group captive' in which it ties up with large commercial establishments to provide them renewable power. In some cases, Tata Power will provide 24*7 renewable power to the companies. ''In such structures, 26 percent equity comes from the buyer of the power and 77 percent comes form our side,'' said Sinha.
The Mumbai-based company's solar EPC orderbook stands at Rs 10,000 crore. The CEO remains confident of the company's order book to swell as he expects more orders in the current quarter. ''We have seen a huge traction in the rooftop, solar power, and EPC business and more orders are expected in this quarter,'' he added.
Sinha clarified that renewable energy is the company's core competence and that he is only looking at investment for the renewable energy platform. Commenting on the company's growth, Sinha claimed that Tata Power's total EBITDA will rise in the near future.
''Right now, our 3 businesses - conventional generation business, transmission and distribution, and renewable business give an equal contribution to our Rs 9,000-crore EBITDA.
Going forward, we are looking at our EBITDA contribution from renewable and transmission and distribution business to go up and become 40 percent each of the total EBITDA,'' said Sinha.
At 1:16 pm, shares of Tata Power were trading 7.59 percent higher at Rs 219.85 apiece on the BSE.
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