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The agreement is at an advanced stage and is likely to be concluded in the coming weeks, as the group of salt and steel companies looks to pay off debts and strengthen its balance sheet before the public planning of the renewable energy unit.
Tata Power’s attempt to attract investors, including CPPIB, was reported by ET in its October 15, 2021 edition. However, the estimated value or possible interest of Temasek and General Atlantic was not previously reported.
Middle Eastern money managers are also being tapped for potential transactions. Generating income from renewable energy assets will help the company achieve its long-term goals. Last year, Tata Power decided to group all its renewable portfolios under an umbrella entity. This includes energy assets in pipeline operations, charging stations, rooftop solar, microgrid, panel manufacturing, engineering, procurement and construction.
The company also plans to go for InVit. It has held talks with Malaysia’s Petronas for a potential investment of up to US$2 billion, but the Negotiations cannot reach negotiations.
Emails sent to Tata Power, General Atlantic, and Temasek Holdings did not elicit any response till press time.
The Canada Pension Plan Investment Board (CPPIB) declined to comment.
Tata Power has one of India’s largest renewable energy businesses with an operational capacity of 2.6 GW consisting of wind and solar in the ratio of 32:68 spread across 11 states, according to rating agency ICRA.
Tata Power has set a target of renewable generation of 15 and 25 GW within 25 and 30 years respectively.

It is expected to build 1 million EV charging stations, which is expected to increase the income of the solar energy EPC business. to get more than 10,000 million kip at the end of 2015, from 4100 billion rupees at the end of 2012 and increasing. Solar pumps — used by farmers for irrigation — revenue of Rs 5000 crore in the next four fiscal years.
The proposed revenue generation is likely to bring all of its green businesses into focus, including renewables, solar EPC, solar pumps, rooftop solar and EV charging.
Tata Power Renewable has a total production capacity of 2953 MW at the end of September 2021, compared to 2667 MW in the same period last year, with a revenue of 710 billion rupees and a profit of 156 billion kip, according to Tata Power’s quarterly presentation. released after the earnings of the second quarter.
The renewables business had a total debt of Rs 11,274 crore at the end of September 2021. In its current capacity, Tata Power Renewable Energy is one of the top three players in the renewable energy space.
Morgan Stanley expects Tata Power’s renewable business EBITDA to grow at 12% CAGR between FY21 and FY25 led by capacity additions, 1.6 GW under construction and normalization of PLF for its wind assets compared to FY21 levels, while revenue will grow at a CAGR of 30%. .
The foreign equity firm believes it sees monetization of green portfolios (RE, solar EPC, solar pumps, rooftop solar and EV charging) over the next 6-12 months, which will help companies with equity capital to perform longer. Long term expectations. Appreciation determined during such asset monetization will be a key driver in the short term, it said.
Renewable energy Tata Power has a generating capacity of 2261 MW, consisting of 1710 MW solar plants and 551 MW wind plants, according to the company’s annual report of FY21 which increased to 2953 MW on September 30,2021.
Among the operating assets, the company has the largest capacity in Karnataka with 517 MW, followed by 400 MW in Rajasthan, Andhra Pradesh with 306 MW and the rest in other states. In 2012, the company had a revenue of 2211 billion rupees compared to 2176 billion rupees last year, with a profit of 286 million rupees.
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