Monday, July 22, 2013

Tata Power Looks For Local Acquisitions

Largest integrated power company, Tata Power Limited is looking for local acquisitions amid stress in the domestic sector. It is looking to strengthen its presence in the solar and wind power segments by way of new projects and acquisitions, TOI states.
The company has an installed generation capacity of over 8500 MW. There is a good opportunity for acquiring the assets as there is current stress observed in the power sector. This acquisition could help in leveraging the company’s existing businesses in the power value chain.
The company is engaged in executing power generation projects, across domestic and international geographies, having a cumulative capacity of 1,151 MW. These include 400 MW hydro plants in Georgia, 202 MW thermal project in Odisha and 234 wind plants in South Africa. Besides, it is also planning to develop 28.8 MW solar project in the Satara district in Maharashtra.
Further, Tata Power is actively pursuing opportunities to acquire land in strategic markets in the country. The company is in the process of acquiring suitable land parcels in the states of Maharashtra, Rajasthan, Gujarat and Karnataka to develop solar and wind projects.
The power producer which already has presence in Indonesia and Africa, among other geographies, is seeking investment opportunities in South East Asian nations such as Vietnam, Myanmar and Indonesia. It is pursuing growth outside India in order to de-risk the operations & investments in India owing to various domestic constraints. Tata power holds a 50% stake in South African wind-power company Cannergi.
The company is also seeking opportunities to acquire or tie-up energy resources across the globe.
This May, Tata Power through its subsidiary Tata Power International signed an agreement with Clean Energy Invest AS (Clean Energy) and IFC InfraVentures for developing hydro projects worth $700 Mn in Georgia.
Last year, Tata Power had acquired 26% stake in PT Baramulti Sukses Sarana Tbk (BSSR) coal mine in Indonesia, through its subsidiary Khopoli Investment Limited; it also had acquired 30% stake in Sekoko Coal JV.
It is observed that today, Green Infra is also planning to acquire 59.5 MW wind energy projects of TVS Energy, in Tamil Nadu.
Some other deals in this segment includes:
A unit of Sembcorp Industries, backed by investor Temasek, likely to acquire a majority stake in NCC Power Project for R1500 Cr.
Jain Irrigation Systems planned to exit its wind power business to cut its debt.
DSPC had planned to acquire wind power farms this July.