Circuit change

Mumbai, Nov. 26: Tata Power Company is planning to ramp up its generating capacity by over 5,400 mega watt (MW) over the next four years.

The company’s plan to create a capacity of 4,000 MW in the Mundra mega power project and 1,050 MW in the Maithon joint venture project is also on track.

The first unit of the Mundra project will be commissioned by September 2011.

The total cost of the project is put at Rs 17,000 crore with a debt-equity ratio of 75:25. Mundra’s financial closure was completed in April 2008, the company has raised Rs 1,700 crore by way of debt and invested Rs 950 crore as equity.

The first unit of the Maithon project, which is being set up in a collaboration with the Damodar Valley Corporation, will start operations by October 2010; the second unit will start by April 2011.

The project cost is estimated at Rs 4,450 crore.

Tata Power is also planning capacity additions in its existing units over the next four years. Around 318 MW will be added in 2010, 1,138 MW by 2011, 1,600 MW by 2012 and 2,400 MW by 2013.

The company has recently raised $300 million through foreign currency convertible bonds, which will be listed on the Singapore Stock Exchange.

Proceeds from this issue will be invested in the existing power plants, projects under implementation and those undertaken through subsidiaries.

The company has posted a 17 per cent rise in consolidated net profit at Rs 921.49 crore during the half year ended September 30 from Rs 784.77 crore in the corresponding period last year.

Net revenue from the power business stood at Rs 6,541.59 crore, while that from coal was at Rs 2,289.20 crore compared with Rs 6,107.34 crore and Rs 2,225.10 crore, respectively, during the corresponding period a year ago.

The company’s net revenue for the second quarter ended September was, however, lower at Rs 4,579.19 crore against Rs 4,637.36 crore in the corresponding year-ago period.

Net profit has also declined to Rs 367.73 crore from Rs 527.92 crore last year.