Tata Power


Tata Power Limited is an Indian electric utility company based in Mumbai, Maharashtra, India and is part of the Tata Group. The core business of the company is to generate, transmit and distribute electricity. With an installed electricity generation capacity of 10,577 MW, it is India's largest integrated power company. Tata Power has been ranked 3rd in 2017 Responsible Business Rankings developed by IIM Udaipur. In February 2017, Tata Power became the first Indian company to ship over 1 GW solar modules.

History

The firm started as the Tata Hydroelectric Power Supply Company in the year,1910, which amalgamated with the Andhra Valley Power Supply Company in 1916. It commissioned India's Second hydro-electric project in 1915 in Khopoli for 72 MW. Then second and third power plants were installed in Bhivpuri in 1919 and Bhira in 1922.

Operations

Tata Power has operations in India, Singapore, Indonesia, South Africa and Bhutan. Tata Power Group has its operations based in 35 locations in India.
The thermal power stations of the company are located at Trombay in Mumbai, Mundra in Gujarat, Jojobera and Maithon in Jharkhand, Kalinganagar in Odisha, Haldia in West Bengal and Belgaum in Karnataka. The hydro stations are located in the Western Ghats of Maharashtra and the wind farms in Ahmednagar, Supa, Khanke, Brahmanwel, Gadag, Samana and Visapur.The company installed India's first 500 MW unit at Trombay, the first 150 MW pumped storage unit at Bhira, and a flue gas desulphurization plant for pollution control at Trombay. It has generation capacities in the States of Jharkhand and Karnataka, and a distribution company in Delhi, servicing over one million consumers spread over 510 square km in the North Delhi. The peak load in this area is about 1,150 MW. Tata Power announced on 24 July 2012, commissioning of the second unit of 525 MW capacity of the Maithon mega thermal project in Dhanbad. The first unit of identical capacity was commissioned in September 2011.

Major power plants

The company has executed overseas projects in the Middle East, Africa and South East Asia including the Jebel Ali 'G' station in Dubai, Al-Khobar II and Jeddah III in Saudi Arabia, Shuwaikh in Kuwait, EHV substations in UAE and Algeria, and power plant operation and maintenance contracts in Iran and Saudi Arabia.
Tata Power has a Russian subsidiary, Far Eastern Natural Resources LLC, that has a license for a coal mine in Kamchatka Krai.

Strategic Engineering Division

The firm's Strategic Engineering Division has engaged in defence systems and engineering for over four decades. It works with the MoD and laboratories to provide products and solutions for the defence requirements of the country.
It has already cleared the Joint Receipt Inspection for the first two lots of Pinaka launchers and command posts; the third and fourth lots have successfully undergone factory acceptance tests.Tata Power's Strategic Electronics Division won a tightly contested Rs. 1,000-crore contract for modernising 30 Indian Air Force airbases.

Problems

In cause of dramatically higher coal prices as assumed in the plannings and a fixed price arrangement the Mundra plant in 2012 made big losses. After three successive years of losses as a result, cash flow was becoming an issue for the company. In January 2014 the company sold a 30 percent stake in Indonesian coal company PT Arutmin for $500 million. In July 2014 it signed an option to sell a 5 percent stake in Indonesian coal company Kaltim Prima Coal for $250 million.

Future projects

Tata Power has a 51:49 joint venture with PowerGrid Corporation of India for the Tata transmission project, India's first transmission project executed with public-private partnership financing.
Tata Power has plans to expand generation capacity of 4,000 MW Mundra plant, the country's first operational ultra mega power project, to 5,600 MW.
The company has also a 74:26 joint venture with Damodar Valley Corporation for 1,050 MW coal-based thermal power plant at Maithon in Dhanbad district of Jharkhand, named as Maithon Power Limited. The both units are commissioned on 24 July 2012. It has another a 74:26 joint venture with Tata Steel Limited for thermal power plants to meet the captive requirements of Tata Steel, under name Industrial Energy Limited.
Tata Power has announced its partnership with Sunengy an Australian firm to build India's first floating solar plant based on Liquid Solar Array technology.
In 2016, Tata Power made significant inroads into the renewable energy market in India by means of its acquisition of Welspun Renewables, for a record price of $1.3 billion, the largest acquisition in the Indian renewables sector.
Tata Power bagged a 25-year licence for distribution and retail supply of electricity in Odisha's five circles, together constituting Central Electricity Supply Utility of Odisha for about Rs 175 crore.

Shareholding

As on 15 November 2017, Tata Group held 32.47% shares in Tata Power. Around 210,000 individual shareholders hold approx. 14% of its shares. Life Insurance Corporation of India is the largest non-promoter shareholder in the company with 12.90% shareholding.
ShareholdersShareholding
Promoters: Tata Group companies32.47%
Foreign Institutional Investors24.53%
Insurance Companies21.59%
Individual shareholders14.08%
GDRs3.22%
Others4.11%

The equity shares of Tata Power are listed on the Bombay Stock Exchange, where it is a constituent of the BSE SENSEX index, and the National Stock Exchange of India, where it is a constituent of the NIFTY 50.
Its Global Depository Receipts are listed on the London Stock Exchange and the Luxembourg Stock Exchange.

Awards and recognition