Tata Power to invest ₹25,000 crore in renewable projects by FY27

Tata Power will set up 4 GW of new renewable capacity by FY27, explore 10 GW ingot and wafer manufacturing, and develop a 1,125 MW hydro project in Bhutan

Tata Power plans to invest Rs 25,000 crore in new renewable energy projects by the end of the next financial year (FY27), Managing Director and Chief Executive Officer (CEO) Praveer Sinha told Business Standard on Monday.

 

“Our overall plan is to invest Rs 25,000 crore this year and the next for new renewable energy capacity projects. This includes setting up 1,500 MW capacity projects in the current financial year and an additional 2,500 MW in FY27,” Sinha said in an exclusive interaction following the company’s second-quarter results announced earlier in the day.

 

The private sector power major reported a 14 per cent rise in profit after tax (PAT) for the second quarter ended September 2025. The company’s revenue rose 3 per cent year-on-year (Y-o-Y) to Rs 15,769 crore during the quarter.

 

What policy reforms are driving Tata Power’s expansion plans?

 

Sinha said the company is optimistic about business opportunities arising from two key policy developments in the power distribution sector — the Electricity (Amendment) Bill, 2025, which proposes parallel licensing, and the reforms recently suggested by a Group of Ministers.

 

The latter includes a bailout package for state discoms and provisions enabling states to adopt the Public-Private Partnership (PPP) model in power distribution. “These policy changes could significantly open up opportunities for private sector participation in distribution,” Sinha said.

 

Is Tata Power entering solar manufacturing in a bigger way?

 

Sinha added that the company is examining a proposal to set up 10 gigawatts (GW) of ingot and wafer manufacturing capacity to strengthen India’s solar supply chain.

 

“Once we decide on specific factors like technology, we will be in a position to share more details. The investments will depend on the kind of government support available,” he said.

 

What’s next for Tata Power’s hydro and nuclear ambitions?

 

The company is also optimistic about the nuclear energy business, given the ongoing discussions around legislative amendments to facilitate private sector participation in setting up nuclear power projects in India.

 

Tata Power’s board has approved a new 1,125 MW hydro power project in Bhutan, to be developed with 60 per cent equity from the Government of Bhutan and 40 per cent from Tata Power.

 

“This project will be financed by the World Bank, the International Finance Corporation (IFC), and other lenders. We expect work to begin in June next year,” Sinha said.