Tata Power Explained

Tata Power Company Limited
Type:Public
Founder:Dorabji Tata
Location:Bombay House, 24 Homi Mody Street, Mumbai, Maharashtra, India
Key People:Praveer Sinha [1]
Industry:Electric utility
Products:Electrical power & Natural gas
Services:Electricity generation and distribution, natural gas exploration, production, transportation and distribution
Revenue: [2]
Revenue Year:2024
Income Year:2024
Net Income Year:2024
Assets Year:2024
Equity Year:2024
Parent:Tata Group
Num Employees:23,652 (2024) [3]
Subsid:

Tata Power Company Limited is an Indian electric utility and electricity generation company based in Mumbai, India and is part of the Tata Group. With an installed electricity generation capacity of 14,707 MW out of which 5847 MW is from Non-Conventional(Green Energy) sources rest from thermal, making it India's largest integrated power company. In February 2017, Tata Power became the first Indian company to ship over 1 GW solar modules.[4]

History

The firm started as the Tata Hydroelectric Power Supply Company in 1910,[5] [6] which amalgamated with the Andhra Valley Power Supply Company in 1916.[7] It commissioned India's Second hydro-electric project in 1915 in Khopoli for 72 MW. Then second and third power plants were installed in Bhivpuri (75 MW) in 1919 and Bhira (300 MW) in 1922.[8] [9] [10]

Operations

Tata Power has operations in India, Singapore, Indonesia, South Africa, Zambia, Georgia,Mauritius and Bhutan.[11] Tata Power Group has its operations based in 20 locations in India.
The thermal power stations of the company are located at Trombay in Mumbai, Mundra in Gujarat, Jojobera and Maithon in Jharkhand, Kalinganagar in Odisha, Haldia in West Bengal and Belgaum in Karnataka.[12] The hydro stations are located in the Western Ghats of Maharashtra and the wind farms in Ahmednagar, Supa, Khanke, Brahmanwel, Gadag, Samana and Visapur. The company installed India's first 500 MW unit at Trombay, the first 150 MW pumped storage unit at Bhira, and a flue gas desulphurization plant for pollution control at Trombay.[13] It has generation capacities in the States of Jharkhand and Karnataka, and a distribution company in Delhi, servicing over one million consumers spread over 510 square km in the North Delhi. The peak load in this area is about 1,150 MW.[14] Tata Power announced on 24 July 2012, commissioning of the second unit of 525 MW capacity of the Maithon mega thermal project in Dhanbad. The first unit of identical capacity was commissioned in September 2011.[15]

It also has a distribution company in Ajmer,Rajasthan.And only produces Green Energy in Rajasthan which includes 755 MW of solar energy(Tata Power Solar) and 185 MW of Wind Energy taking total green energy generation to 940 MW.

Major power plants

International operations

The company has executed overseas projects in the Middle East, Africa and South East Asia including:[16] [17] [18]

Problems

In cause of dramatically higher coal prices as assumed in the plannings and a fixed price arrangement the Mundra plant in 2012 made big losses.[20] After three successive years of losses as a result, cash flow was becoming an issue for the company. In January 2014 the company sold a 30 percent stake in Indonesian coal company PT Arutmin for $500 million. In July 2014 it signed an option to sell a 5 percent stake in Indonesian coal company Kaltim Prima Coal for $250 million.[21] As of March 2024, Tata Power's consolidated debt stood at Rs.49,480 crore.[22]

Future projects

Tata Power has a 51:49 joint venture with PowerGrid Corporation of India for the 1200km (700miles) Tata transmission project, India's first transmission project executed with public-private partnership financing.[23]

Tata Power has plans to expand generation capacity of 4,000 MW Mundra plant, the country's first operational ultra mega power project, to 5,600 MW.

The company also has a 74:26 joint venture with Damodar Valley Corporation for 1,050 MW coal-based thermal power plant at Maithon in Dhanbad district of Jharkhand, named as Maithon Power Limited. Both units were commissioned on 24 July 2012. It has another 74:26 joint venture with Tata Steel Limited for thermal power plants to meet the captive requirements of Tata Steel, under name Industrial Energy Limited.

Tata Power has announced its partnership with Sunengy an Australian firm to build India's first floating solar plant based on Liquid Solar Array technology.[24] [25] [26]

In 2016, Tata Power made significant inroads into the renewable energy market in India by means of its acquisition of Welspun Renewables, for a record price of $1.3 billion, the largest acquisition in the Indian renewables sector.[27]

Tata Power bagged a 25-year licence for distribution and retail supply of electricity in Odisha's five circles, together constituting Central Electricity Supply Utility of Odisha (CESU) for about Rs 175 crore.[28] [29]

On December 11, 2023, Tata Power and Indian Oil Corporation announced a partnership to establish over 500 electric vehicle (EV) charging points across India, aiming to enhance the country's EV infrastructure and facilitate intercity travel for EV users.[30]

Shareholding

As on 25 December 2023, Tata Group held 32.46% shares in Tata Power. Around 210,000 individual shareholders hold approx. 16% of its shares. Life Insurance Corporation of India is the largest non-promoter shareholder in the company with 12.90% shareholding.[31] [32]

Shareholders data-sort-type="numeric"Shareholding
Promoters: Tata Group companies 32.46%
Foreign Institutional Investors 23.67%
Insurance Companies 19.45%
Individual shareholders 16.04%
GDRs 3.70%
Others 4.68%

The equity shares of Tata Power are listed on the Bombay Stock Exchange,[33] where it is a constituent of the BSE SENSEX index,[34] and the National Stock Exchange of India,[35] where it is a constituent of the NIFTY 50.[36]
Its Global Depository Receipts (GDRs) are listed on the London Stock Exchange[37] and the Luxembourg Stock Exchange.[38] [39] [40]

See also

Notes and References

  1. Web site: Tata Power Company Ltd. – Company Info – Management . Economic Times. 1 September 2013.
  2. Web site: Tata Power Integrated Q4FY2024.
  3. Web site: Tata Power AR 2023-24.
  4. News: Bureau. BS B2B. Tata Power Solar becomes first Indian firm to ship out 1 GW solar modules. Business Standard India. 9 March 2017. 7 February 2017.
  5. Kale, Sunila (2014). Electrifying India: Regional Political Economies of Development. Stanford University Press. p. 72. .
  6. Tyson, Kirk (1996). Competition in the 21st Century. CRC Press. p. 173. .
  7. Web site: Tata Power Company Ltd. . NDTV.com . 1 September 2013.
  8. News: Tata Power eyes stronger overseas presence . Business Standard . 23 June 2013 . 1 September 2013.
  9. Web site: History: Our Legacy . Tata Power . 1 September 2013.
  10. News: Tata Power, SN Power announce their partnership to set up hydro power projects in India & Nepal . Business Standard . 30 October 2009 . 1 September 2013.
  11. Web site: Annual Report 2022-23. Tata Power . 1 September 2013.
  12. Web site: Power Projects . Tata Power . 1 September 2013.
  13. Web site: Trombay plant's 500MW unit modernisation by '15: Tata Power . moneycontrol.com . 16 December 2012 . 1 September 2013.
  14. Web site: Profile – Tata Power Delhi Distribution . Tata Group . 1 September 2013 . 3 October 2013 . https://web.archive.org/web/20131003114251/http://www.tata.com/company/profile.aspx?sectid=OZCcVOb7N4Q= . dead .
  15. News: Tata Power's second unit of Maithon project on stream. 25 July 2012.
  16. News: Tata Power has mega core plans . Economic Times . 7 February 2008 . 1 September 2013.
  17. News: Tired of delays, Tata Power turns to overseas for expansion . https://archive.today/20130901005604/http://articles.timesofindia.indiatimes.com/2012-07-29/india-business/32923111_1_mw-capacity-mw-from-renewable-energy-largest-private-sector-power . dead . 1 September 2013 . 29 July 2012 . . 1 September 2013.
  18. Web site: Sustainability Report 2008-09 – Tata Power . Tata Power . 1 September 2013.
  19. News: Tata Power arm wins coal mine in Russia . . 22 December 2017 . Tata Power today said its Russian subsidiary Far Eastern Natural Resources LLC has bagged the mining licence for a thermal coal mine in Kamchatka province in far east Russia. . https://web.archive.org/web/20180804195748/https://economictimes.indiatimes.com/industry/indl-goods/svs/metals-mining/tata-power-arm-wins-coal-mine-in-russia/articleshow/62211276.cms . 4 August 2018.
  20. Asthana, Shishir (20 January 2013) Analysis: Tata Power's UMPP woes | Business Standard News. Business-standard.com. Retrieved on 26 December 2018.
  21. News: CLoss making Tata Power to sell 5pc stake in Indonesian coal mine. 5 July 2014. India Gazette. 14 July 2014. https://web.archive.org/web/20140714172438/http://www.indiagazette.com/index.php/sid/223524989/scat/701ee96610c884a6/ht/Loss-making-Tata-Power-to-sell-5pc-stake-in-Indonesian-coal-mine. dead.
  22. Web site: Along with capex; Tata Power intensifies efforts on debt restructuring .
  23. Web site: Tata Power: A Power Story . bigwitenergy. 11 January 2022 .
  24. News: Tata Power inks deal with Australian co for floating solar units . The Hindu . 22 March 2011 . 1 September 2013.
  25. Web site: Media releases – Sunengy, Australia, partners with Tata Power to build the first floating solar plant in India . Tata Group . 22 March 2011 . 1 September 2013 . 28 July 2013 . https://web.archive.org/web/20130728040012/http://www.tata.com/article.aspx?artid=lhFNkZyG9Wo= . dead .
  26. Web site: Tata Power to build India's first floating solar plant . moneycontrol.com . 22 March 2011 . 1 September 2013.
  27. http://www.thehindubusinessline.com/companies/tata-power-arm-completes-acquisition-of-welspun/article9108020.ece tata power arm completes acquisition of welspun
  28. News: Singh. Sarita C.. 2019-12-23. Tata Power bags 25-yearr [sic] Odisha discom licence for Rs 175 crore]. The Economic Times. 2020-06-08.
  29. Web site: Tata Power to own licence for distribution, retail supply of electricity in Odisha. 2020-06-08. www.businesstoday.in. 23 December 2019 .
  30. Web site: Livemint . 2023-12-11 . Tata Power ties up with Indian Oil to set up 500 EV charging points across India . 2023-12-11 . mint . en.
  31. Web site: Annual Report 2012-13 . Tata Power . 1 September 2013.
  32. Web site: Shareholding Pattern as on 31st March 2013 . Tata Power . 1 September 2013.
  33. Web site: Tata Power Co. Ltd. . BSEindia.com . 1 September 2013.
  34. Web site: Scripwise Weightages in S&P BSE SENSEX . BSE India . 31 August 2013 . 1 December 2015 . https://web.archive.org/web/20151201094728/http://www.bseindia.com/indices/IndicesWatch_Weight.aspx?iname=BSE30&index_Code=16 . dead .
  35. Web site: Tata Power Company Limited . NSE India . 1 September 2013 . 21 October 2013 . https://web.archive.org/web/20131021073335/http://www.nseindia.com/live_market/dynaContent/live_watch/get_quote/GetQuote.jsp?symbol=TATAPOWER . dead .
  36. Web site: Download List of CNX Nifty stocks (.csv) . NSE India . 31 August 2013 . 13 October 2013 . https://web.archive.org/web/20131013143407/http://www.nseindia.com/content/indices/ind_niftylist.csv . dead .
  37. Web site: TPCL Tata Power Company Limited GDR (each representing 1 ordinary share) . London Stock Exchange . 27 July 2009 . 31 August 2013.
  38. Web site: TataPower GDS 09 ne . Luxembourg Stock Exchange . 28 July 2009 . 1 September 2013 . 4 March 2014 . https://web.archive.org/web/20140304193418/https://www.bourse.lu/instrument/equity/summary?cdVal=153435&cdTypeVal=ACT . dead .
  39. News: Tata Power raises $335 mn through GDRs . Times of India . 23 July 2009 . 1 September 2013.
  40. Web site: Share Trading . Tata Power . 1 September 2013.

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