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He focused on debt reduction, asset-light strategies, and consumer-facing businesses. How has it come out so far?
All of our operations are going very well and some of our new businesses, including renewables, rooftop solar and large-scale solar power, among others, have already started to show results as a good foundation has been laid. We have implemented several changes in new distribution acquisitions in Odisha, in terms of proper billing and consumer aggregation measurement. We have changed almost 20 million meters from 90 million meters and the temporary collection has decreased significantly and the collection has improved. Many things we have done, the benefits of that will come in the next quarter and you will see better results and more improvements.
Do you have a plan to reduce debt by hiving the renewable energy business into InvIT? update?
We had a plan at one stage but now we are not moving forward with it. We have almost Rs 39,000 crore debt and debt to equity ratio which has actually come down to 1.32, which is very good for an infrastructure company. Similarly, our EV to EBITA has also been improved and we are in something like: 3.6. Again, this is a very healthy number. Next, we expect better performance and better ebitda that we will have, we will be able to service and service the debt that we have.
Recently, your site faced a cyber attack. What are you doing to ensure this does not happen again?
This is a very unfortunate incident. Our IT system, operating technology and power supply system are not affected, but some of the data they have encrypted, we have taken further steps in consultation with Internet security experts and now we ensure that better software, better tools, better filters. is provided to ensure that these types of attacks do not occur and do not affect our business. And I think some of the best-in-class solutions we are implementing will help us prevent such incidents in the future.
Your company has 61 subsidiaries. Have plans to include?
For our renewable business, we will bring all renewable businesses on one platform and all renewable companies will start integrating with Tata Power Renewable Energy Ltd (TPREL) renewable platform. However, there will still be some subsidiaries because the nature of the business requires us to have an SPV (Special Purpose Vehicle) for capital projects. But in addition, others will be subsumed in TPREL. Also, there will be great efficiency because of this, because the special manpower in each of these companies will be subsumed in one company. There will be many legal management issues that you need to vote separately and everything will disappear. Therefore, there is a combination that will happen. And I think the benefits will be huge for the joint venture.
Your rooftop solar business saw 100% revenue growth in Q2. How does your company manage this when the segment does not choose other players?
You need to have a lot of retail mindset for this business. Today we have nearly 12 million consumers across the country. It is a package service that we provide. We also provide the convenience of a large number of consumers by providing them with the appropriate app that they can see on a real-time basis, their energy consumption, production, how much they have given to the grid, financial benefits and so on. One is a rooftop solar business.
How does Tata Power focus on its international business?
Internationally we have been withdrawn. We have divested some of our investments in South Africa and in Singapore. We are in the process of divesting our other investments, depending on what kind of market appetite there is and what kind of benefits we get from that transaction. We will process those transactions in due course. But we are very sure that we will withdraw. We have big plans in India as the country plans to add 350 gigawatts of new generation capacity by 2030. Nowhere in the world offers this kind of opportunity.
Does your company evaluate opportunities in green hydrogen?
Well, we are. We are in discussions with many of our partners to see if we can do some pilot projects in India. And when we do the pilot program and get comfortable with the technology, price, and service to offer, we will expand it. We are also looking for opportunities in offshore wind.
Energy consumption has recovered and is set to increase. How are we prepared to meet this growing demand?
In the last six months, energy demand has increased by 12%. In fact, in the first quarter demand has increased by almost 17%. We are seeing a significant recovery in energy consumption, and this is coming from all sectors including industry, commerce, and residential. It reflects economic growth. I think that the country will meet the future needs of energy. The existing capacity we have in our coal, gas and water and the addition of water capacity to come, I think we will be able to meet our future energy needs, there should not be any shortage. .
What we see at the end of October this April is a sudden increase in demand. In addition, I think that the railways and the coal companies are together to arrange the coal better, including the Shipping and handling to ensure that we do not experience any temporary shortages or challenges in performance. The work of the factory in full.
Energy prices rise. How are your views the same?
Electricity prices have increased mainly because coal prices and transportation costs have increased. It all depends on the price of oil and the price of coal. But I expect that in the future when we have better supply chain management in the country, in terms of commodity prices or in terms of coal availability, energy prices will be helped. Also, if the government takes some steps to bring energy under GST, energy costs can come down significantly. At the same time, the government must fix the tax rate for industrial consumers and Trade does not have to pay large subsidies for residential and non-residential agricultural consumers. live Then I think that will help us. Therefore, there are many opportunities to reduce electricity costs, especially for industrial and commercial consumers. 30 to 40%.
So, do you think the Electricity Amendment Bill will be able to lead to much needed reforms?
I think the electricity amendment bill is the most important step. I think there are some disciplines that will come because of the improvements that have been made. offer And these are very good for the sector because this sector has to be commercial. It is necessary to have a certain discipline regarding the procurement of energy and payment of electricity bills on time. I do not think that the tax rate will increase due to any amendment but will be reasonable. Today some consumers end up paying very high taxes because they skip subsidizing other consumers. There should be a uniform tax rate and if any consumer must get certain benefits in terms of Reducing the tax rate, or exempting the tax rate, then that should be part of the government’s subsidy program.
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