Tata Power is scouting for investment opportunities and assets overseas to spread the risk and grow.
The company, which has already lined up several power projects in many countries, said it would concentrate on Africa, Southeast Asia, the Middle East and the SAARC (South Asian Association for Regional Co-operation) region to grow its overseas business.
Multiple reasons
“There are multiple reasons to make a foray into the international market, and it is not just due to the fact that today there are tremendous challenges in India, which seem to be lingering for too long. Firstly, land issues. Secondly, most States are claiming to become surplus, suggesting that they do not need any extra power. In addition, there are not too many opportunities that one sees on the horizon,” Tata Power Managing Director Anil Sardana told The Hindu .
“With the result, whenever an opportunity comes, there is tremendous competition, which renders that particular opportunity completely unviable. But perhaps this is one of the reasons that would deter one from investing more in India,” Mr. Sardana said.
“One must give credit to opportunities that exist outside. It is not that since one finds challenges in India, one decides to move out. The opportunities in countries outside are more predictable, far less risky, and the attitude of select nations is progressive towards foreign investment. These factors also prove positive for the company to go there. It is important for faster clearance of these investments by respective governmental institutions,” Mr. Sardana added.
Tata Power has prioritised four key regions — Africa, Southeast Asia, the Middle East and SAARC — for its international play.
The company has deployed resources in these regional geographies to understand the market dynamics and scout for opportunities.
Basis on short-listing
“The short-listing has been done based on aspects such as opportunities, risks, likely rewards, law and order situation and ethics-cum-values prevalent in these geographies,” Mr. Sardana said.
In Southeast Asia, investment opportunities are being evaluated in Vietnam, Myanmar and Indonesia.
In addition, the company is seeking opportunities to acquire or tie-up energy resources across the globe. A full-fledged International Business Development team is looking after international expansion. “Tata Power aims to be a significant player in the international energy market, and it is our endeavour to do that in a responsible and sustainable manner,” Mr Sardana said.
At present, most of Tata Power’s international projects are under implementation.
These include 126 MW Dagachhu power plant in Bhutan, which is close to commissioning.
Tata Power International, along with Clean Energy Invest and IFC InfraVentures, is to develop hydro projects in Georgia for sale of power to Turkey.
Tata Power has also achieved financial closure of its 135 MW Amakhala wind project and 95 MW Tsitsikamma wind power projects in South Africa.
