Tata Power is planning to invest Rs 1,500 crore to expand its capacity of renewable energy.
The company will require Rs 400-450 crore of annual equity for the expansion plan. It intends to add as much as 150-200 MW of wind capacity and 30 MW of solar capacity per annum. At present, Tata has a total capacity of 8,500 MW and produces 500 MW from renewable sources.
The company is also planning to develop its renewable energy projects into a new special purpose vehicle. It has plans to monetise the special purpose vehicle to raise its own equity.
Recently, to solve the under-recovery challenges at its Mundra ultra mega power project operations and cash flow concerns, the company has offloaded its 30 per cent stake in one of the Indonesian coal companies - PT Arutmin, for $500 million (Rs 3,123.5 crore), to Bakrie group.