Synopsis: Praveer Sinha, MD, and CEO of Tata Power discussed the FY22 outlook, opportunities from renewables, and the deleveraging plan for the company.
Tata Power’s MD and CEO, Praveer Sinha, highlighted the company’s FY22 outlook, renewable energy potential, and deleveraging strategy.
As the renewable energy and electric vehicle market is looking very attractive all over the world, big corporates are trying to make a name for themself in this new market, including Tata Power.
The company has ambitious growth aspirations in the renewable energy sector. “Our plans are very ambitious and aggressive and we are committed to clean and green energy,” he said in an interview with CNBC-TV18.
Tata Power’s status on renewable plans remains the same. “We are examining all options, we are doing a whole lot of detailed analysis and we will be coming with our decision on this, and we will share the roadmap with you,” he added. 450 GW of renewable energy is a huge capacity, which will need large players and will be set up till 2030.
“You need players who can provide good quality service on a sustainable basis. We will see a lot of consolidation in the renewable area as we have seen in other areas also. We expect to hear from other players, their game plans and we will accordingly moderate or modify our plans based on the opportunity,” he explained.
He further stated Tata Power Solar has been dropped from the company’s merger plans. Tata Power Solar, according to Sinha, has a larger green play. He also noted that the Odisha distribution firms (DISCOMs) had been doing exceptionally well.
Sinha gave his thoughts on electric vehicle (EV) charging too. “There are three types of EV charging. First is the home charging where whatever is the investment, we get the returns from that. The other is the EVs which are put in bus depots or for fleet owners like Uber and Ola where we get returns.
The challenge is in the public charging where the utilization factors are still low. In next one-two years, with more people using EV, the utilization factor will improve.” Sinha said that he expects to see improved returns in EV charging over the next few years.
