Tata Power to invest ₹1.25 lakh crore by FY30, 65% capex earmarked for clean energy

Tata Power, the country’s largest integrated private power company, has proposed a capital expenditure of ₹1.25 lakh crore over the next five years to scale up its generation capacity to around 30 GW by the financial year 2029–30. Of this, nearly 65% of the investment will be directed towards clean and green energy, according to the company’s investor presentation filed with the exchanges.

In an interaction with the media in Bhubaneswar, Praveer Sinha, Managing Director and CEO of Tata Power, said the company’s capital expenditure programme will be anchored around renewable generation, transmission, distribution reforms and new-age energy solutions.

He said that over the next five years—from FY2026 to FY2030—Tata Power is planning an average capex of around ₹25,000 crore per year, taking the total planned investment to about ₹1.25 lakh crore. The company’s capital expenditure stood at ₹17,273 crore in the last fiscal, compared with ₹13,214 crore in FY24.

The Tata Group company currently has a diversified presence across thermal, hydro, renewable generation, transmission, distribution and emerging segments such as rooftop solar, EV charging and solar manufacturing.

By FY30, Tata Power is targeting a total installed capacity of over 30 gigawatts (GW), with more than 20 GW coming from clean and green sources. The company also expects its transmission network to expand to around 10,000 circuit kilometres, while its distribution business is projected to serve about 40 million customers.

Currently, Tata Power has a total installed capacity of about 15.7 GW, including thermal assets and around 7 GW of clean and green capacity. During the year, its transmission network stood at 7,047 circuit kilometres, covering both operational and under-construction lines, while the distribution business served about 12.8 million customers.

Tata Power is planning a 10 GW solar ingot and wafer manufacturing plant in India—a key raw material used in the production of solar cells and modules, as well as semiconductor chips—with an investment of ₹6,500 crore, Sinha said.

In transmission, Tata Power sees a large opportunity pipeline driven by the evacuation of renewable energy from resource-rich regions and cross-border interconnections. The company flagged anticipated transmission capex of over ₹1 lakh crore linked to large projects such as the evacuation systems for renewable power from Barmer and Khavda, the Paradeep–Andaman HVDC link, and the India–Sri Lanka HVDC link, largely slated between FY27 and FY30. Mumbai’s transmission business continues to be the backbone of the segment, contributing nearly 80% of the transmission division’s profit after tax, the presentation highlighted.

On the generation side, Tata Power is stepping up renewable capacity additions, targeting a dominant share of solar and wind in its future portfolio. The presentation highlighted that the solar manufacturing business has seen a sharp improvement in profitability, with EBITDA and PAT nearly tripling year-on-year in H1 FY26, supported by higher volumes and operating leverage.

For the first half of FY26 (H1 FY26), Tata Power’s revenue stood at ₹33,233 crore, up 4% year-on-year, while EBITDA climbed 11% to ₹7,961 crore. Profit grew 10% to ₹2,508 crore compared with the same period last year. The strong earnings were backed by broad-based growth across conventional generation, renewables and distribution businesses.

Meanwhile, shares of Tata Power closed Monday’s trade at ₹382.20 per share, up 0.08%, with a market capitalisation of ₹1.22 lakh crore.