Tata Power's board approved an investment of ₹11,871 crore in a 1.8GW pumped storage project at Shirwata in Maharashtra on Wednesday. The company plans to fund 75% of the project with debt and the remaining 25% with equity. Completion is expected in 51 months, according to a filing with the stock exchanges.
Key Details
Pumped storage projects are important for integrating renewable energy into the power grid. They provide continuous electricity and improve grid stability. Currently, India has 122.7GW of pumped storage capacity planned, with 7.4GW already operational, as reported by the Central Electricity Authority (CEA). This investment fits with Tata Power's strategy to increase capital spending across its operations.
Background
In the first half of fiscal year 2027, Tata Power reported a record capital spending of ₹10,000 crore. The company is also expanding its solar manufacturing capabilities. It has set up 4.9GW of integrated solar cell and module production capacity. Additionally, Tata Power plans to start building its ingot-wafer plant in Odisha in November. Production is expected to begin by March 2028, as stated by CEO Praveer Sinha.
This investment in renewable energy infrastructure could strengthen Tata Power's position in the energy sector. It may also affect its stock performance. Investors will look for updates on the project's progress and the company's solar manufacturing plans. These updates may influence market sentiment in the renewable energy sector.
Based on reporting by: livemint.com, moneycontrol.com