Tata Power to transfer renewables portfolio to fully-owned subsidiary Tata Power Renewable Energy

Tata Power today said it is restructuring its renewable energy assets as part of its growth focus in the renewable energy segment.

It plans to create  wholly-owned subsidiary, Tata Power Renewable Energy Limited, to which it will transfer its entire renewable energy portfolio  of wind, solar and production gases.

The renewable energy assets to be transferred include 376.5 MW of wind assets in Gujarat, Maharashtra and Tamil Nadu, 3 MW solar asset in Mulshi and 120 MW of waste heat recovery based power plants at Haldia, West Bengal.

The proposed structuring is sought to be implemented by way of a Scheme of Arrangement under Sections 391 and Section 394 and other applicable provisions of the Companies Act, 1956.

The renewable wind assets - Bramhanvel (11.3 MW), Khandke (50.4 MW), Samana (50.4 MW), Gadag (50.4 MW),Visapur (10 MW),Sadawaghapur (17.5 MW),Agaswadi (49.5 MW) and solar assets at Mulshi (3 MW) are proposed to be aggregated in TPREL.

Additionally, Supa (17 MW) (Renewable Energy Undertaking No. 2), Nivede (21 MW), Poolavadi (99 MW) and Haldia (120 MW) are being transferred to four SPV companies which would be wholly owned companiess of TPREL.

Anil Sardana, CEO & MD, Tata Power, said, ''The board of directors of Tata Power has approved a scheme of arrangement of the company's renewable assets portfolio of wind, solar and production gases by consolidating them under the renewable arm, Tata Power Renewable Energy Limited, a wholly-owned subsidiary of Tata Power. We aim to create a focused clean and renewable energy business in TPREL with its own growth trajectory. Since the aggregation of renewable assets is being done to a wholly owned subsidiary of the Company, the shareholders in the parent company shall have the same or better value accruing to them as earlier, even after the proposed restructuring.''

TPREL proposes to expand its capacity through organic and inorganic means over the next few years. TPREL is the primary vehicle through which Tata Power's goal of 20-25 per cent generation capacity from clean energy sources will be achieved.The current installed capacity of TPREL is 220 MW (158 MW of wind and 54 MW of Solar) with 250 MW of renewable energy projects under construction.

Post structuring, the total installed capacity of TPREL will be about 720 MW with additional 250 MW under construction. Other existing waste heat recovery based power plants of the company in certain JVs are also intended to be aggregated, subject to appropriate approvals and consents. The proposed restructuring is subject to necessary corporate/regulatory approvals, documentation and other details to be finalised.