TATA'S GREEN POWER PLAY
Outlook Business|July 2024
India's decision to add 500 GW renewables to its energy mix has triggered a power sector marathon. Whoever greens the fastest will win. Tata Power is training hard
Ayaan Kartik
TATA'S GREEN POWER PLAY

More than a hundred years ago, standing by the Kundalika river in Roha near Mumbai (then Bombay), Tata Group founder Jamsetji Tata had an epiphany. Staring at the ebb and flow of the water, Jamsetji wondered if the river could be harnessed to power Mumbai. And thus, was born Tata Power. The company, 109 years later, finds itself at the crossroads again.

India wants to add 500 gigawatt renewable energy capacity by 2030 to meet its carbon emission reduction targets. But as of June 8, thermal power made up 54.9% of India’s total installed capacity, Union power ministry data shows. The Central Electricity Authority’s update for April shows thermal makes up for 79.8% of India’s total energy generation.

A new power economy is the need of the hour. What will that mean for Tata Power?

“The company has expanded itself in the renewable space. It is not just about setting up large utility-scale plants. We have built large utility-scale plants of every type—solar, wind, hybrid and bundled power among others,” says Praveer Sinha, Tata Power’s chief executive.

Tata Power has plans to spend big over the next decade. In January, the company announced a ₹70,000-crore investment to build 10 gigawatt of solar and wind capacity in Tamil Nadu. The big capital push comes after years of deleveraging and shifting strategic priorities.

Getting a Messy House in Order

The past decade was challenging for India’s power sector. Investments only trickled in. The average plant load factor of thermal plants—a measure of actual power output against the maximum possible—shrank from 77.68% in 2009–10 to 55.89% in 2019–20. Companies struggled to make optimum use of their plants. Their cash flow suffered. In April 2019, outstanding dues of state government-owned discoms reached ₹21,198 crore.

هذه القصة مأخوذة من طبعة July 2024 من Outlook Business.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة July 2024 من Outlook Business.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من OUTLOOK BUSINESS مشاهدة الكل
'Automation is Redefining Efficiency and Precision in Jewellery Manufacturing'
Outlook Business

'Automation is Redefining Efficiency and Precision in Jewellery Manufacturing'

Increasing brand consciousness and awareness among consumers is helping expand the organised jewellery retail industry. MP Ahammed, chairman of Malabar Group, discusses prominent trends in the jewellery industry

time-read
1 min  |
November 2024
BATTLE TO WIN THE AI RACE
Outlook Business

BATTLE TO WIN THE AI RACE

In Supremacy, Parmy Olson tells the astonishing and behind-the-scenes story of the battle between the world’s two leading artificial intelligence firms, OpenAl and DeepMind and the continuing rivalry of its founders Sam Altman and Demis Hassabis respectively

time-read
5 mins  |
November 2024
A LEADER WHO EMPOWERS
Outlook Business

A LEADER WHO EMPOWERS

Anshul Arzare, MD and CEO of YES SECURITIES, wants to ensure a workplace where employees not only contribute to the company's vision but also feel content

time-read
2 mins  |
November 2024
EV Unplugged
Outlook Business

EV Unplugged

Electric vehicles are crucial to India’s climate change plan. But reliance on China for imports and technology constraints remain hurdles the sector needs to overcome

time-read
6 mins  |
November 2024
Every Lamborghini Owner is a Brand Ambassador
Outlook Business

Every Lamborghini Owner is a Brand Ambassador

Regional director of Automobili Lamborghini, Francesco Scardaoni, talks to Prachi Khanna about the brand’s approach to fostering a sense of community among its vehicle owners. Edited excerpts

time-read
3 mins  |
November 2024
NO ZEST FOR ZED
Outlook Business

NO ZEST FOR ZED

A government initiative to green MSMEs is not finding enough takers

time-read
4 mins  |
November 2024
SMALL PLANTS, BIG TROUBLE
Outlook Business

SMALL PLANTS, BIG TROUBLE

Climate-triggered stress is placing an unprecedented burden on small businesses. But a lack of access to climate aid hinders the sector's ability to adopt greener methods

time-read
6 mins  |
November 2024
'We Think About the Rider More Than Any Other Company
Outlook Business

'We Think About the Rider More Than Any Other Company

Rapido co-founder Aravind Sanka talks to Neeraj Thakur and Deepsekhar Choudhury about how flexibility and fair pay helped his company disrupt the Ola-Uber duopoly. Edited excerpts

time-read
3 mins  |
November 2024
LABOUR PANGS
Outlook Business

LABOUR PANGS

Rising cost of living in a fast-growing economy is making workers restless

time-read
5 mins  |
November 2024
'Hustle is No Virtue'
Outlook Business

'Hustle is No Virtue'

It has become fashionable to talk about the verb “hustle” these days, especially in professional settings.

time-read
3 mins  |
November 2024