TATA Power – Corporate Overview

8/11/2019 TATA Power Corporate Overview

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TATA PowerCorporate Overview

Tata Power is India's largest integrated power company.

The Company has an installed generation capacity of 8521 MW in India and a

presence in all the segments of the power sector viz Generation (thermal, hydro,

solar and wind), Transmission, Distribution and Trading.

Some of the other business ventures of Tata Power

Tata Power Trading Company Limited (TPTCL), a wholly owned subsidiary, is the first

company to have been awarded a power trading licence by the Central Electricity

Regulatory Commission enabling it to carry out transactions all over India.


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TATA PowerNational Presence


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TATA PowerInternational Presence


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TATA PowerInternational Presence

Its international presence includes -

1. Strategic investments in Indonesia through 30% stake in coal mines.

2. A geothermal project in Singapore.

3. In South Africa through a joint venture called Cennergi' to develop projects in

16 different countries in Africa.4. In Australia through investments in enhanced geothermal and clean coal

technologies.

5. In Bhutan through a hydro project in partnership with The Royal Government of

Bhutan.


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TATA PowerCore Business

Transmission Distribution The Core business of Tata Power is

& Trading Fuel Assets Power generation which is done with the help of following

steps :

Power Logistics

Generation

Fuel Assets : This is the raw material (coal)on

which the business survives .

Logistics: The processed fuel is effectivelyhandled & supplied for the main task of

power generation.

Power Generation : Here the raw material is

used for generating power

Transmission Distribution & Trading : The

generated power is then prudently

transmitted & distributed, in order to

minimize waste & optimize profits.


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TATA PowerEmerging Renewable Energy Player

Harnessing Hydro Power:

The Company has an installed hydro capacity of 447 MW inMaharashtra.

Tata Power and Norway-based SN Power entered into an exclusivepartnership to develop hydro power projects in India and Nepal. The

consortium bagged the 240 MW Dugar Hydro Electric Project inChenab Valley in Himachal Pradesh, India.

The Company has a JV with the Royal Government of Bhutan underwhich it is implementing a 126 MW Dagachhu Hydro Project with Druk

Green Power Company.

Tata Power, through its subsidiary Tata Power International Pte Ltd, hassigned an agreement with Clean Energy AS (Clean Energy) and IFC InfraVentures (IFC) for developing hydro projects of an aggregate capacity of400 MW in Georgia.


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Harnessing Solar Energy

Tata Power has a strong portfolio of 28+ MW of solar generation

capacity. It commissioned its solar power project of 25 MW in Mithapur,

Gujarat in January 2012 and has also executed a 3 MW solar photo-

voltaic plant at Mulshi,

The Company had set up its first solar power plant of 110 kW, way back

in 1996 at Walwhan in Lonavla.

A 60.48 kWp solar power plant has been installed on the rooftop of one

of the Companys offices in Mumbai. The power generated by these solar

panels is expected to take the lighting load of the entire building.


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Harnessing Wind Energy

Tata Power has an installed capacity of 437 MW and plants spread acrossfive states of Maharashtra, Gujarat, Tamil Nadu, Karnataka and Rajasthanthe leading states in promoting wind power generation in India.

Cennergi is a Joint Venture (JV) between Tata Power and ExxaroResources, a South Africa-based diversified resources company.

Cennergi will focus on the investigation of electricity generation projects

in South Africa, Botswana and Namibia. The initial project pipeline

focuses on renewable energy projects in South Africa and Cennergis

strategy is to create a balanced portfolio of generation assets.

Department of Energy, Government of South Africa announced Cennergias preferred bidder for two wind projects of 234 MW - Amakhala 139

MW and Tsitsikamma 95 MW projects. Amakhala project has achieved

financial closure.


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Harnessing Geothermal Energy.

A consortium led by Tata Power along with Origin Energy Ltd., Australiaand PT Supraco, Indonesia won the Sorik Marapi geothermal project inNorthern Sumatra, Indonesia.

The Environmental Permits were received in May, 2012. Land acquisition

is progressing well and exploratory drilling is expected to commence in

FY 14, after PPA discussions conclude.

Geothermal project in Indonesia

Geothermal project in Indonesia


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Other Innovative sources of Energy

Waste Gas Generation : Tata Power has set up various plants at Haldia

and in Jamshedpur based on the blast furnace and coke oven gases which

are waste gases from steel making process which help in reducing

greenhouse gas emission significantly. Its looking at other similar projects

with Tata Steel. Focus on Clean technologies :Tata Power is experimenting with span of

unique pilot projects across energy sources.

Biomass gasification: A 250kW system using rice husk will be

installed at the Tata hydro power plant. near Karjat. If successful, this

technology can be taken to hundreds of villages.


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Other Innovative sources of Energy

Concentrated photovoltaic (C-PV): A 13.5kW pilot unit is beingdeveloped in which sunrays are concentrated on PV cells and the

assembly floats on Walwhan lake (Maharashtra) in order to cool the

cells. If successful, this technology can be scaled up across all the

lakes that provide hydro power to Tata plants in West Maharashtra

and thus generate about 1,000 MW.

Solar powered telecom towers: More than 600,000 telecom towers

in India use diesel generator sets to provide power to their

antennas. Tata BP Solar is providing solar PV panels that can replace

the gensets on 25 such installations. This technology can be

upgraded to augment power to local grids.

High altitude wind: Tata Power will test a 35kW turbine mounted

on a blimp that will float 333m above the ground to catch winds

that are more intense and sustained at that altitude.


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TATA Power - Diversified Business Interests

Tata Power Trading Company (TPTCL),a wholly owned subsidiary of Tata

Power Company (TPC), has been awarded the 1stever power tradinglicence by the Central Electricity Regulatory Commission (CERC) under

Section 14 of the Electricity Act 2003.

TPTCL trades surplus power of State Electricity Boards, captive power

plants and generating companies, as also the power output of

merchant power plants, currently under execution by TPC and others.

TPTCL transacted 9431 MUs(million units) during the year as

compared to 5583 MUs in the previous year and has shown a CAGR

of 41% over the past 5 years. Considering total Power traded in the

market it was ranked the second largest trader with a market share of13.91% in FY13.

The gross revenue for FY13 was Rs. 3,789.29 crore as compared to Rs.

1,926.70 crore in the previous year. The PAT increased by 74.23% to

Rs. 24.48 crore, as against Rs. 14.05 crore in the previous year.


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The Strategic Engineering Division (SED)

It has been in operation for over 30 years and has been pursuing

development and production activities for the Indian defence

sector.

Over 90% of the companys strategic electronic efforts areexecuted for the defence sector. The division has long-standing

relationships with the Armed Forces and DRDO.

The Division has developed specialised equipment for Air Defence

and Naval Combat Systems. It is also developing a program to modernize the Airfield

Infrastructure for the Indian Air Force.


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Tata Power Solar :

Founded in 1989, TPS was originally formed as a joint venture

between Tata Power and British Petroleum Solar (BP Solar).

The headquarters are in Bangalore.

It is a 100% subsidiary of Tata Power and is a market leader in

Solar Photovoltaic technology in India. Nearly 75% of its sales

are achieved from exports to Europe and USA.


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TATA PowerRevenue Trend

The revenue in FY 2012-2013 grew by 13%.

The Operating Revenue was higher at Rs.

9,567.28 crore, as against Rs. 8,495.84

crore, an increase of 13%.

Operating Revenue was higher mainly onaccount of higher fuel cost built in the

Revenue recovery; higher transmission

charges paid in the Mumbai Regulated

business based on the Intra-state

transmission order; higher built-in tariff and

through improved operational performance


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TATA PowerRevenue TrendThe Operating Profit was higher by

13%, significantly through improvedoperational performance and

favourable Appellate Tribunal for

Electricty (ATE) Order in Mumbai

Licence Area. Other Income was lower

at ` 721.67 crore, as against ` 983.46

crore in the previous year. This was

mainly due to lower dividend income

from Coal investments driven by lower

global coal prices as compared to lastyear, in spite of higher coal production

from the mines.


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TATA Power FY 13 Performance Analysis

The company reported net losses of Rs. 1,088 crore and Rs. 85 crore during 2011-12 and2012-13 respectively.

While Tata Power has posted losses at the net level, its operating profit grew 16 per cent and25 per cent during 2011-12 and 2012-13 respectively.

About 40 per cent of its operations earn assured returns from regulated tariffs. Revenue fromthe coal business (27 per cent of consolidated revenues) has been impacted by many factorsincluding a fall in global coal prices. Segment profits from the coal business almost halved in2012-13. For the quarter ended September 2013, the business made a loss (before interestand tax) of about Rs. 4 crore in contrast with a profit of Rs. 287 crore in the year-ago period.

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TATA Power – Corporate Overview