Tata Power Company Limited is planning to invest Rs 600 billion over the next three years, with nearly 50 per cent earmarked for the renewable energy sector.
The investment plan involves allocating Rs 150 billion in 2023-24, followed by an escalation to Rs 200 billion in 2024-25, Rs 220 billion in 2025-26, and Rs 230 billion in 2026-27, culminating in a total capex of Rs 600 billion by fiscal year 2027. In addition to the previously announced 2,800 MW hydro pumped storage projects (PSPs) requiring an investment of Rs 130 billion, Tata Power has identified three more sites – Potalpali, Kataldhara, and Nenavali in Raigad district – with the potential to generate up to 9,000 MW of power through similar projects. The company aims to commission the 1,000 MW PSP at Bhivpuri, Raigad, by the end of 2027, followed by the Shirwata, Pune, project (1,800 MW) shortly thereafter. Notably, Tata Power has decided against adding new coal-based thermal power capacity to its portfolio. The investment will be financed with 70 per cent debt and the remaining 30 per cent as equity.