While the government announced the National Nuclear Energy Mission in Budget 2025-26 seeking participation from the private sector, Tata Power Company Limited has already shortlisted six locations to mark its entry into the sector. In an exclusive interview with Moneycontrol, Praveer Sinha, CEO and MD of Tata Power, said policy, technology and sourcing fuel for nuclear fission are the main aspects that should guide the government’s nuclear policy for power generation.
Talking about Tata Power, Sinha said the company’s capital expenditure (capex) is going to be about Rs 22,000 crore in FY26, similar to that in FY25. Besides, the company is also aiming at a 20 percent market share in the rooftop solar power generation segment in FY26, he said.
Edited excerpts:
Has the company’s revenue from its renewables portfolio outpaced that from its thermal capacity yet?
No, it has not outpaced thermal yet. But revenue is not a good way of looking at it. I think what is important is how the EBITDA (earnings before interest, taxes, depreciation and amortisation) and the net profit of Tata Power and its subsidiaries will change. For Tata Power, renewable energy will contribute 40 percent of EBITDA in the next three years, with conventional energy decreasing to 20 percent. It is only by 2035 that you may see a boost in conventional energy again with hydro and pumped hydro projects coming through.
Also read: Tata Power Q3 net profit rises 10% to Rs 1,188 crore
Also, our business mix is shifting from 90 percent regulated to 70 percent regulated, with a target of 60 percent regulated and 40 percent unregulated for market-driven opportunities.
In December you told Moneycontrol that Tata Power will foray into nuclear energy and now the Union Budget has announced the National Nuclear Energy Mission. Where do the company's plans move from here?
From the mission side, it is all still at a very nascent stage. Firstly, the Atomic Energy Act and the Civil Liability for Nuclear Damage Act need to be amended. Amendment to the Civil Liability Act is needed so that the insurance for any civil liability is taken care of by the government or a separate corpus is created (for this).
The second aspect is the technology—whether it will be Indian technology, foreign technology, and how cost competitive those technologies are.
Finally, the third part is about sourcing the fuel, its cost, its other commercial implications—reprocessing and storage of spent fuel are the main aspects that need policy clarity.
Has Tata Power identified any location for its potential nuclear power plants?
We have evaluated over 10 sites for nuclear projects and shortlisted six. But we will wait for policy clarity before proceeding.
What impact is Donald trump’s presidency, given his policy moves now, likely to have on Indian businesses, according to you?
For the power sector, per se, I don’t see any impact. The power sector in India is doing quite well, and the plan to have most of the manufacturing in the country is helping us despite various geopolitical events. For example, the Russia-Ukraine war didn’t spell any energy crisis for India like it did for Europe, and we could continue to generate and supply electricity.
In Tata Power, we have not been impacted even by the pause in funds by the US because all our modules and cells are manufactured in India and consumed in India.
India’s energy transition will continue despite global uncertainties, driven by strong power demand. I think India has its own agenda of growth, and we should pursue that going forward.
How much capex is planned for FY26?
It will be similar to FY25—about Rs 22,000 crore. Segment-wise, about 60 percent will go to our renewable business, 20 percent to transmission and distribution, 10 percent to conventional generation, and 10 percent to pumped hydro projects.
Is Tata Power planning to go aggressive on rooftop solar given that we now have the PM Surya Ghar scheme?
Absolutely, we currently have about a 13 percent market share in rooftop solar. We will definitely cross 20 percent in the next 12 to 18 months.
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