Tata Power to invest Rs2500 crore in three years

29 May 2009

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.