Tata Power, India’s largest private power generation company, is eyeing expanding further into the electricity distribution business. To this end, the company has asked its shareholders to approve of raising its authorised share capital by ₹200 crore, giving it more headroom to raise equity for future investments.
While Tata Power has stated in the past that it will no longer invest in new thermal power assets; renewable energy and retail distribution of electricity are its new areas of focus.
In May, Union power minister Raj Kumar Singh announced that India will privatise all electricity distribution companies (discoms) in the Union Territories. Discoms in the union territories come under the administration of the central government while the respective state governments govern those in the states.
This means that the discoms in Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, and Daman and Diu, Delhi, Jammu and Kashmir, Lakshadweep, Ladakh, and Puducherry will soon be up for grabs to the private sector.