TIRUNELVELI: With three years left in his role as Tata Power MD, Praveer Sinha has set an ambitious goal to double the company’s profits and increase revenues by 60% by FY30.
The strategic plan for the 114-year-old company was outlined on Friday, highlighting that renewable energy would contribute half of the projected growth, while the remaining would come from diverse operations including transmission & distribution networks, thermal power sources, and pump storage projects.
Sinha, 62, has been serving as the MD of Tata Power for the past six years, and company policy requires managing directors to relinquish executive duties at age 65.
The profit and revenue aspirations are being locked-in at a time when the company has limited its coal-based power generation capacity while evolving into a contemporary renewable energy player.
Currently, Tata Power operates 6.7 GW of green energy capacity, with 10.1 GW under development, targeting 33 GW by FY30. Its coal-fired generation capacity is 8.86 GW. Sinha anticipates profits rising to Rs 10,000 crore and revenue to Rs 1 lakh crore in FY30, up from Rs 4,109 crore and Rs 61,542 crore in FY24. Operating profit – a measure of underlying business performance – is expected to exceed Rs 30,000 crore by FY30, more than doubling from FY24 levels.
“A trend shift has happened and these are not one-offs. Quarter-on-quarter, for twenty quarters, we have made improvements in our performance, so the foundation has been laid very well, and now we are ready to leapfrog from our present levels,” Sinha stated at Tata Power’s new 4.3 GW solar cell and module facility in Tirunelveli, Tamil Nadu.
Primary growth areas include renewable energy, transmission & distribution, and pumped storage & hydro projects.
The company currently operates 4,633 ckm transmission capacity, and plans to reach 10,500 ckm by FY30. Two pumped hydro projects are under development: a 1,000MW facility in Bhivpuri, Maharashtra and an 1,800MW project at Shirota, also in Maharashtra, adding 2,800MW of pumped storage capacity within five years.
“Today, we are geared up to become one of the largest in the renewable space,” Sinha said, noting this fiscal’s capital expenditure of Rs 22,000 crore is up from Rs 12,000 crore in FY24.