Tata Power Company limited has announced renewed focus on renewable energy capacity addition and restructuring of its renewable energy assets as part of its growth focus in the renewable energy space. The assets include 376.5 MW of wind assets in Gujarat, Maharashtra and Tamil Nadu, 3 MW solar asset in Mulshi and 120 MW of waste heat recovery based power plants at Haldia, West Bengal.
The proposed structuring involves carving out of 500 MW of renewable assets of the Company to its subsidiary Tata Power Renewable Energy ltd. (TPREl) and its subsidiaries. The proposed structuring is sought to be implemented by way of a Scheme of Arrangement (“Scheme”) under Sections 391 and Section 394 and other applicable provisions of the Companies Act, 1956.
On this development, Anil Sardana, CEO & MD, Tata Power, 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 limited (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. Since the aggregation of renewable assets is being done to a wholly owned subsidiary of the Company, the shareholders in the parent company shall have the same or better value accruing to them as earlier, even after the proposed restructuring.”