Tata Power too expresses interest in acquiring stressed assets
Tata Power is evaluating whether to acquire stressed power projects of other companies, an exercise also begun by JSW Energy and central government-owned NTPC.
Its annual report for 2014-15 said: “Due to the current financial stress in the sector, there are assets which may be available for acquisition. The company is evaluating opportunities to acquire projects in various stages of development.”
A recent report of CRISIL Ratings says there are 46,000 Mw worth of power projects facing viability issues from lack of long-term buyers for electricity and/or inadequate fuel supply. It expects mergers and acquisitions of such assets.
Tata Power has proposed to increase its generation capacity from the present 8,750 Mw to 18,000 Mw by 2022, with 20-25 per cent from ‘clean and green’ sources (both 25 tonnes per annum of coal and coal equivalent), 4,000 Mw of distribution and decentralised distributed generation and a 10-time growth in value-added businesses.