Tata Power approves ₹11,871 crore pumped storage project in Maharashtra

NEW DELHI: Tata Power’s board on Wednesday approved an investment of ₹11,871 crore in a 1.8GW pumped storage project at Shirwata in Maharashtra, as the company expands its power generation capacity.

According to a filing with the stock exchanges, 75% of the project cost will be funded through debt and the remaining 25% through equity. The project is expected to be completed in 51 months.

Pumped storage projects are expected to play a key role in integrating renewable energy into the power grid by providing round-the-clock electricity and grid stability, alongside battery energy storage systems. According to the Central Electricity Authority (CEA), 122.7GW of pumped storage capacity is currently in the pipeline in India, while 7.4GW is operational.

The investment comes as Tata Power steps up capital deployment across its businesses. During the first half of fiscal year 2027 (April-September), the power generation, distribution and component manufacturing company invested ₹10,000 crore, its highest-ever half-yearly capital expenditure.

Tata Power shares closed at ₹360.95 on the BSE on Wednesday, up 0.40% from previous close.

The company is also expanding its solar manufacturing capabilities. Tata Power has set up 4.9GW of integrated solar cell and module manufacturing capacity and plans to begin wafer and ingot manufacturing at its Odisha plant by March 2027, chief executive and managing director Praveer Sinha told reporters after the earnings announcement on Wednesday.

In a statement, the company said it produced 0.9GW of solar cells in the September quarter, taking first-half production to 1.8GW. Solar module production stood at 1GW during the quarter and 2GW in the first half.

"Manufacturing business delivered strong growth in profitability and operational efficiency," the statement said.

The manufacturing expansion is part of a broader push in renewables. Tata Power said its renewable energy business added 1.4GW of capacity over the past 12 months, supported by manufacturing margins and yields. Its rooftop engineering, procurement and construction (EPC) business has crossed 5.1GWp in cumulative installations.

The company also reported improved operational performance in its Odisha distribution business, where aggregate technical and commercial (AT&C) losses declined by 5.7% over the first quarter of fiscal year 2027 (FY27). Its conventional generation assets, meanwhile, delivered strong operating and financial performance, the company said.

Tata Power reported a 32.65% year-on-year increase in consolidated net profit to ₹1,652.04 crore for the July-September quarter of FY27, compared with ₹1,245.39 crore a year earlier. Revenue from operations rose 26.32% to ₹19,635.94 crore from ₹15,544.91 crore.

"The quarter's performance was driven by broad-based growth across generation, renewables, transmission & distribution and emerging consumer-focused green businesses. The quality and resilience of the earnings continue to strengthen, with regulated and long-term contracted businesses accounting for an increasing share of Ebitda, providing greater predictability and visibility of cash flows and profitability," the company said in its statement.

A key focus remains the company's Mundra power plant, which continues to operate at full capacity under Section 11 of the Electricity Act until the end of December. The provision allows the government to direct power plants, including imported-coal-based facilities, to operate at full capacity during periods of high demand.

Tata Power said discussions with multiple states on supplementary power purchase agreements (SPPAs) were at an advanced stage. Sinha told reporters that the company was in talks with distribution companies in Rajasthan and Haryana to secure SPPAs for power supplied from the Mundra plant.

Rituraj Baruah is a special correspondent covering energy, housing, urban affairs, heavy industries and small businesses at Mint. He has reported on diverse sectors over the last eight years including, commodities and stocks market, insolvency and real estate; with previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42.

Get Latest real-time updates

Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

✕

Wait for it…

Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.