Tata Power, India's largest private sector power utility, yestrday said that it plans to spend around Rs2,500 crore over the next three years on its projects in various parts of the country.

The company released its financial results yesterday reporting a 58 per cent surge in net profit for the March 2009 quarter, which stood at Rs354 crore against Rs224 crore for the corresponding period last year. However, total income declined by 12 per cent to Rs1,373 crore from Rs1,560 crore for the same period.

For FY09 the net profit of the company grew 6 per cent to Rs922 crore against Rs870 crore in FY08. The total income recorded a sharp rise of 22 per cent to Rs7,236 crore compared to Rs5,916 crore last year.

After announcing the results, Tata Power managing director Prasad Menon told the reporters that the company is planning to increase its distribution base in Mumbai and has already prepared a rollout plan for the next six years.

"The total amount planned for the Mumbai licence area will include investments in distribution as well as transmission business,'' Menon said, adding that about Rs800 crore would be needed for the distribution alone in the coming three years. 

"We have already submitted the capex and tariff plan to the regulator and expect an approval sometime this week," he said.

Tata Power has a total installed capacity of above 2300 megawatts (MW) both thermal and hydro-based power plants and plans to add further 5760 MW in the coming three to four years.

Menon admitted that there is a delay of about a year in commissioning of the projects, but stressed that it is not due to finances but because of land acquisition.

The company plans to add 200 MW capacity during the current financial year, including the 120 MW unit-V of the Jojobera plant in Jharkhand, 30 MW in Haldia and 50 MW wind power.

Menon said that the first 525 MW unit of the Maithon power plant in Jharkhand is planned to be commissioned in FY11 followed by the second unit during the same year.

The largest of the projects is the 4000 MW ultra-mega power plant in Mundra, Gujarat, the first unit of which is expected to go on stream by 2012.

Tata Power stocks were trading at Rs1112 on the Bombay Stock Exchange at 10.30 am today, up Rs14.05 from its yesterday's close.