Tata Power To Achieve Renewable Energy Targets in India by 2022

One of the largest power companies in India will be spinning off to the clean energy market as an independent firm with a different strategic campaign. Tata Power is set to bring renewable energy assets, including solar and wind energy up to 500 megawatts under a new name, Tata Power Renewable Energy.

The reconstruction was subject to a shareholder and regulations approval. It will cover private equity investors to the power company as the mother company seeks funding to boost its capacity to green energy through acquisitions and rural projects.

The clean energy division of India is the new gold mine for private equity funds. After Prime Minister Narendra Modi set a goal for the country to have 100GW of solar power and 60GW of wind energy on or before 2022, private equity funds are now making millions of dollars through investments. To boost India's clean energy sector, the government permitted foreign investments with tax breaks.

Inclined to its investments, Abu Dhabi has invested $200 million to ReNew Power a couple of weeks ago, marking the first renewable energy space investment. Also, SoftBank of Japan entered India's clean energy sector with a partnership made with Bharti Enterprises a couple of months ago.

Tata Power will be looking at share sales to PE private equity investors in the renewable energy business once it reaches a reasonable extent, as it will aid deriving striking compensations. After the restructuring, the power company will be generating 750 megawatts of renewable energy together with a facility that is still under construction, which will provide 250 megawatts of clean and renewable energy.

Although, it could not be ascertained that the power company's venture overseas for renewable energy like South Africa's wind energy unit and Australia's geothermal energy along with Indonesia will be accepted through the new structure of Tata Power.

"We aim to create a focused clean and renewable energy business in TPREL with its own growth trajectory," Tata Power Managing Director Anil Sardana said. The company continues to check other structures for its clean energy business to give better value to its shareholders by enhancing and unlocking operational collaborations. In this regard, the company's board of directors approved an arrangement scheme for renewable energy assets such as solar, wind, and gasses through consolidation under Tata Power Renewable Energy's namesake.

© 2022 iTech Post All rights reserved. Do not reproduce without permission.

More from iTechPost