The assets considered for restructuring include 376.5MW of wind assets in the Indian states of Gujarat, Maharashtra and Tamil Naidu; 3 MW of solar asset in Mulshi; and 120 MW of waste heat recovery- based power plants at Haldia, West Bengal.
The renewable wind assets include 11.3MW Bramhanvel, 50.4MW Khandke, 50.4MW Samana, 50.4MW Gadag, 10MW Visapur, 17.5 Sadawaghapur, 49.5MWAgaswadi while the solar assets comprise 3MW Mulshi.
Tata Power is also transferring 17MW Supa, 21MW Nivede, 99MW Poolavadi and 120MW Haldia power plants to four SPV companies, which will be wholly owned by TPREL.
Tata Power CEO Anil Sardana said: "The company continuously evaluates various structures for its businesses to deliver better value to its shareholders by unlocking and enhancing operational synergies.
"Towards this objective, the board of directors of the company has approved a scheme of arrangement of the company’s renewable assets portfolio of wind, solar and production gases by consolidating them under the renewable arm, namely Tata Power Renewable Energy (TPREL), a wholly-owned subsidiary of the company.
"We aim to create a focused, clean and renewable energy business in TPREL with its own growth trajectory."
Tata Power plans to achieve its goal of 20-25% power generation capacity from renewable sources through TPREL, which currently has 158MW of wind, 54MW of solar capacity and a further 250MW of renewable energy projects under construction.
The proposed restructuring, however, is subject to necessary corporate / regulatory approvals, documentation and finalization of other details.
Tata Power expects the planned assets transfer to enable TPREL to tap different and competitive sources of capital to fund its future growth plans.
The Indian Government has set a target to have 175GW of installed renewable generation capacity by 2022.
Image: TPREL plans to embark on different and competitive sources of capital to fund its future growth plans. Photo: courtesy of worradmu/ FreeDigitalPhotos.net.
