Tata Power Company has mopped up $335 million (about Rs 1,619 crore) through issue of securities in international markets.

Tata Power plans to use the proceeds to fund capital expenditure of its existing power plants, projects under implementation and other future projects. The company requires Rs 23,600 crore by March 2012 to complete its ongoing expansion. It has already raised Rs 18,100 crore as debt and other loans from various financial institutions.

Tata Power intends to raise Rs 5,500 crore on its own to fund the equity portion and for other capital expenditure. The company has plans to raise Rs 2,800 crore through internal accruals and the rest to be raised through dilution of equity of subsidiaries, disinvestment of various holdings or assets and dilution at parent level through various vehicles.

The company is setting up 4,000 MW Mundra power plant, 1,050 MW Maithon, a JV with Damodar Valley Corporation, and 98 MW of wind power in Maharashtra. The projects are expected to be commissioned by 2013, with a view to increase its power generation capacity from 2,800 MW to over 8,000 MW. Meanwhile, Tata Power also plans to strengthen its power transmission and distribution systems in Maharashtra with an investment of over Rs 1,000 crore in a few years.

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Tata Power inks two deals with OPG Group (30-Jun-09)