Power major Tata Power is looking abroad as it faces challenges in India. Addressing the Tata Power AGM in Mumbai today, Tata Group chairman Ratan Tata said that the company was seeking opportunities overseas to fulfill the needs of its shareholders.
Ratan Tata raised some points at the AGM, where he said that there are certain issues that remain as far as the growth of the power sector in India is concerned and they are related to coal supplies and linkages relating to coal. There are delays in environmental clearances and also the supply of gas. These are the issues that have made companies, like Tata Power look at international operations in a big way. They will seek international projects and seek them as their main growth drivers for the future.
Tata spoke about the transmission sector in India which he said has been growing at a rate of 6-7% per annum. He said that has to grow and take an even higher percentage as far as growth is concerned. The power distribution sector is something that needs a significant reform, according to him. He said, “It is still facing losses to the tune of 35-40% and that needs to be worked upon where alternative models for distribution, particularly, decentralized generation using renewable resources or energy should be utilized.”
He mentioned that the company is actively looking at international operations, seeking opportunities to acquire energy resources across the globe to de-risk the domestic operation challenges that the company is currently faced with.
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