Tata Power looks to global opportunities to mitigate risks

30 Jul 2012

Tata Power is looking for opportunities in international markets in the face of constraints on the home turf, in a bid to maximise returns and minimise risks, according the company's chairman Ratan Tata.

Despite robust growth in the domestic power demand, he added, multiple constraints across the entire value chain had made growth in the country very challenging.

"Thus, your company has decided to venture in international markets that offer a greater potential for growth with the strategic intent of maximising returns and minimising risks," Tata said in the company's 2011-12 annual report.

Several issues, ranging from acute coal shortages to environmental hurdles and poor financial health of discoms, were hurting the country's power sector, that had a generation capacity of over 2 lakh MW.

He pointed out that the company was actively pursuing business opportunities in other countries and hoped to increase its global footprint over the coming years.

In addition to Tata Power, Tata chairs boards of many other companies of the Tata conglomerate as also the main promoter firm, Tata Sons Ltd.

Cyrus Mistry, the deputy chairman of Tata Sons Ltd would succeed Ratan Tata.