Power sector needs ₹3 trn funding over 5 years: Tata Power CEO at BS Infra

BS Infrastructure Summit 2025: Tata Power CEO Praveer Sinha says India's power sector needs over ₹3 trillion in investment in five years, urging 30-35 year financing to match asset life cycles

India’s power sector will require more than ₹3 trillion in investment over the next five years, across generation, transmission, and distribution, Tata Power CEO and MD Praveer Sinha said on Thursday, stressing the need to unlock long-term financing channels to sustain the country’s growth ambitions.

 

Speaking at the Business Standard Infrastructure Summit, Sinha said, “The power sector itself requires more than ₹3 trillion in the next five years — across generation, transmission and five lakh (500,000) kilometres of transmission lines. That capital has to come from multiple sources. Banks are liquid and able to fund projects, but we also need multilateral and international long-term funding.”

 

 

Financing gaps a structural constraint

When asked about restraints in the industry that may hamper growth, he flagged financing as a structural constraint.

 

“Most projects have a 30-35 year life. Recently, I was doing a hydro project with a 35-year life, but in India, door-to-door financing is capped at 20 years. Why shouldn’t we have 30-35-year funding? The cost of capital and cost of funding are becoming challenges, especially for small- and medium-sized industries. We need simpler and more competitive access to financing for them to survive,” he said. 

 

Renewable growth but still lagging scale

Despite these funding restraints, Sinha pointed towards the sector's growth.

 

“In 2015, we had 5 GW of solar; today, we are at 115 GW, and by 2030, we aspire to reach 290 GW. Last year, we added 30 GW of renewable capacity. But China added 400 GW in a year — 280 GW of that in solar alone. In the first six months of this year, they added 212 GW. That is the type of transformation we are talking about,” he said.

 

India’s per capita power consumption remains just 1,400 units annually, the Tata Power CEO noted, with rural households consuming as little as eight to nine units per month.

 

“That’s enough for two bulbs, one fan and a mobile charger. Nearly 40 per cent of our population still lives with very low consumption. This is the golden period for the country. In the next 10-20 years, whatever we do will still be too little, too less. We need to bring speed and agility,” he said. 

 

India can do more: Praveer Sinha

When asked about broader gaps in infrastructure in India, Sinha stated that while India has done well with roads, ports, and airports, it still has the potential to do more.

 

"We've done good roads... We've done good airports... Ports have been added, but it's so inadequate," he said. He added, "Everywhere you go, there is a choke and a waiting period — whether in road, rail or shipping. We need many more airports. Noida airport is fantastic and will start in the next two months, but we cannot stop at one."

 

Sinha went on to say that while progress in infrastructure is there, India should still strive to do more.

 

"I don't think there is ever an opportunity for us to pat our back and say that we've done enough and legitimate requirement and we are satisfied," he said.