Tata Power's plan to reduce debt through InvIT gets delayed

The company was planning to bring down its gross debt to below Rs 25,000 crore from Rs 49,000 crore with the InvIT structure

Till now, a Trusts nominee had to retire from the Tata Sons board at 70 years of age
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Tata Power’s plans to reduce debt by hiving off its renewables energy businesses into an infrastructure investment trust (InvIT) has missed the March-end deadline

Dev Chatterjee Mumbai
Tata Power’s plans to reduce debt by hiving off its renewables energy businesses into an infrastructure investment trust (InvIT) has missed the March-end deadline.

The company was planning to bring down its gross debt to below Rs 25,000 crore from Rs 49,000 crore with the InvIT structure. 
The earlier deadline mentioned by Tata group chairman N Chandrasekaran was March 2021 but due to the Covid-19 disruption, the plan could not take off.

InvITs own, operate and manage operational infrastructure assets.

The cash flows from the businesses owned by the InvITs are distributed among the unitholders.

In the financial year ending March this year, Tata Power

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First Published: Apr 12 2022 | 12:33 AM IST

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