Tata Power bets on nearly doubling its revenue to Rs 1 lakh crore by 2030: CEO & MD Praveer Sinha

Praveer Sinha, CEO and MD, Tata Power Company Ltd.

Tata Power Ltd has set an ambitious target of achieving a revenue of Rs 1 lakh crore and a profit after tax (PAT) of Rs 10,000 crore by 2030, the company’s CEO and MD Praveer Sinha said on December 6.

“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 at Tata Power’s 4.3 GW solar cell and module manufacturing plant in Tirunelveli, Tamil Nadu.

Sinha said the company is looking to scale its earnings before interest, taxes, depreciation, and amortization (EBITDA) from the current level of over Rs 14,000-15,000 crore to over Rs 30,000 crore by 2030. “We are looking at a PAT of over Rs 10,000 crore by 2030 from a profit of Rs 4,200 crore last year,” he said.

Tata Power increased its capex from Rs 12,000 crore in FY24 to Rs 21,000 crore in FY25, and going forward, it plans to do a capex of Rs 25,000 crore each year, Sinha said.

On November 21, Tata Power signed a Memorandum of Understanding (MoU) with the Asian Development Bank (ADB) for $4.25-billion clean energy projects financing. The MoU was signed at COP29 in Baku, Azerbaijan.

Tata Power is one of the leading integrated power company in India, and owns a diversified portfolio of 15.5 GW which spans the entire power value chain, from renewable and conventional energy generation to transmission and distribution. A part of the Tata Group, Tata Power has 6.7 GW of clean energy generation, constituting 43 percent of its total capacity.

India’s largest single-location solar cell and module manufacturing plant

This week Tata Power commissioned its 4.3 GW of cell manufacturing unit in Tirunelveli, Tamil Nadu which is an addition to the 4.3 GW module manufacturing plant commissioned in October, 2023 and located in the same site. Together, the entire cell-to-module manufacturing plant has been built at a cost of Rs 4,300 crore.

In January this year, the company had signed a MoU with the Tamil Nadu government for a cumulative investment of Rs 70,800 crore in the state. But, senior officials who are not authorised to speak to the media said the actual total investments depends on feasibility of projects.

“Currently, this is the largest single-location solar cell and module manufacturing unit in India. We can also expand our manufacturing by another 4 GW at the same site, but that decision is yet to be taken,” Sinha said.

Tata Power has availed the Production Linked Incentive (PLI) scheme offered by the Union government that entails building at least 48 GW backward integrated solar module capacity with Rs 18,500 crore government support. India has set a target of having 500 GW non-fossil fuel based power generation capacity.

At least 80 percent of the employees in the plant are women who were trained over a period of six months. Besides, most of the employees at the plant were hired from within 50-60 kms radius of the plant. Moneycontrol visited the manufacturing facility at Tirunelveli on December 6.

Sinha said all of the solar modules manufactured in its plant will be used for domestic use and it does not have any plan to export its modules or cells as of now. "At least 50 percent of the modules manufactured by the company will go for its utility scale solar projects, which Tata Power is developing for itself. The balance will go for third party EPCs, which includes projects which Tata Power is executing for CPSUs such as NLC India Ltd, NHPC Ltd, NTPC Ltd and SJVN Ltd. Besides, some modules also are sold directly to consumers (industrial, commercial or residential) for the rooftop solar programme," he said.

CPSUs in the power sector are mandated to tender at least 10 GW of renewable projects each year until FY28, which is why private companies such as Tata Power are bidding for them.

Apart from the Tirunelveli plant, Tata Power also has a smaller cell to module manufacturing unit in Bengaluru with a capacity of 530 MW for cells and 580 MW for modules.