i. industry developments
global power sector
In 2023, the global power sector experienced a significant shift towards cleaner, more resilient, and technologically advanced systems, driven by the urgent need to combat climate change and enhance energy security. Renewable energy capacity additions soared by almost 50%, reaching nearly 510 gigawatts (GW) (Source: IEA), marking the fastest growth rate in two decades. This surge was supported by a substantial global investment of $1.77 trillion (Source: BNEF) in energy transition technologies, reflecting a 17% y-o-y increase.
Amid the progress towards sustainable energy, the world faced extreme weather events, including unprecedented heatwaves in Asia, severe sandstorms in Beijing, and destructive cyclones in Africa and Myanmar. These challenges tested the resilience of power supply systems, and highlighted the critical need for investing in energy security. In response, some countries turned to traditional thermal sources for baseload power. However, there was also a noticeable shift towards greater acceptance of nuclear energy, previously shunned due to safety concerns. For example, Sweden repealed its anti-nuclear laws and allocated funds to advance its nuclear strategy.
Significant developments were also seen in energy storage solutions, essential for ensuring energy security and availability. California commissioned the largest lithium-ion Battery Energy Storage Solution (BESS) project (750 MW/3000 MWh), and the Australian government pledged AU$2.3 billion for battery storage installations. The price of lithium battery fell by 14% to ~$139/kWh (Source: BNEF) over the past year, fostering optimism for the widespread adoption of battery storage systems. In India, there was a notable focus on energy storage, particularly in Pumped Storage Solutions. The government envisions installed capacities of 7 GW by FY27 and 26 GW by FY32. Additionally,
the BESS segment gained traction, with the Indian government issuing guidelines for a 94 billion programme to provide viability gap funding of up to 40% for developing 4,000MWh of battery energy storage systems in the coming years.
Other clean technologies such as electric vehicles (EVs) and Distributed Energy Resources (DERs) are gaining traction, further supporting the decarbonisation journey. Emerging technologies like generative AI, virtual power plants, and vehicle-to-grid integration are gradually gaining momentum, creating synergies across various power systems. In the coming years, these new technologies will need to integrate with the existing ones to enhance reliability, flexibility, efficiency, sustainability, and safety within the industry.
Climate Goals Reinforced
In 2023, energy-related carbon dioxide (CO2) emissions grew globally by 410 million tonnes (Source: IEA) to register a new high of 37.4 billion tonnes. This 1.1% rise in emissions followed a 1.3% increase in the previous year. Although emissions from electricity generation were expected to decline, droughts forced countries to rely more heavily on fossil fuels to compensate for reduced hydropower production. Recognising the urgent need to address rising emissions, 198 countries at COP28 emphasised the importance of tripling global renewable capacities to 11,000 GW and doubling the annual rate of energy efficiency improvements by 2030 to stay on course with the 1.5?C pathway.
In response, countries implemented various measures, such as denouncing thermal capacities, pivoting to nuclear energy, promoting energy efficiency, encouraging carbon offsets and credits, and investing in carbon capture and storage. The United States (US) introduced new energy efficiency regulations aimed at avoiding 2.4 billion metric tons GHG (greenhouse gas) emissions and saving $570 billion over the next 30 years. Malaysia published its National Energy Transition Roadmap (NETR) and Hydrogen
Economy and Technology Roadmap (HETR) in November 2023. Colombia, the worlds sixth-largest coal exporter, pledged to phase out coal plants, while the Philippines planned to retire and repurpose 5 GW of coal-based capacities. Sweden amended its energy targets to achieve a 100% fossil fuel-free status by 2045 and reversed its stance on nuclear power to facilitate new reactor construction. Meanwhile, France and Indonesia advanced their carbon capture initiatives, with France launching its Carbon Capture, Utilisation, and Storage (CCUS) strategy and Indonesia beginning construction of its first CCUS project, capable of storing up to 1.8 gigatonnes of CO2 emissions.
Renewables Growth on Track
Global investment in renewable energy surged to $623 billion (Source: BNEF), marking an 8% increase from the previous year. Renewables accounted for 35% of the total $1.77 trillion investment in clean energy technologies. By the end of 2023, renewable generation capacity reached approximately 3,880 GW (Source: IRENA, IEA), reflecting a notable 15% growth. The annual addition of nearly 510 GW in renewable capacity marked the fastest growth rate in the past two decades. While Europe, the United States, and Brazil saw record high renewable capacity additions, Chinas acceleration was among the highest, commissioning solar PV projects equivalent to the entire worlds output in 2022.
However, grid bottlenecks, administrative barriers, and insufficient financing hindered capacity additions in other regions, especially in emerging economies. Offshore wind development faced setbacks, with 15 GW of projects cancelled or postponed in the United States and the United Kingdom. Rapid government responses to mitigate grid issues, develop favourable policies, and address financing challenges are essential for reigniting growth. The IEA predicts that renewable power capacity additions will continue to rise over the next five years, with solar PV and wind accounting for 95% of new RE capacity additions, driven by supportive policies and improving economic attractiveness.
Green Hydrogen (H2) Gaining Ground
The green hydrogen sector experienced significant growth, bolstered by increased policy support from numerous countries. Investment in clean hydrogen tripled to $10.4 billion in 2023 (Source: BNEF). By December 2023, 53 countries had published hydrogen strategies, with another 30 developing their strategies. Vietnam, for example, unveiled an ambitious strategy to produce 100,000-500,000 metric tons of hydrogen by 2030, scaling up to 20 million tons by 2050 (Source: BNEF). Indonesia finalised its strategy, while Mozambique was in the preparation stage and the UK updated its green hydrogen strategy.
Among the 53 nations with hydrogen strategies, 22 outlined targets for electrolyser capacities, totalling 114 GW by 2030, with 60% concentrated in the Europe, Middle East, and Africa region. By 2030, approximately 16 markets aim to collectively produce 24.62 million tons of hydrogen annually (Source: BNEF).
Substantial subsidies across the value chain supported this burgeoning sector, with global subsidies reaching $363 billion (Source: BNEF), more than quadrupling since 2021. Japan plans to allocate $27 billion over 15 years to hydrogen projects through a contract-for-difference (CfD) programme, while the UK will provide around $3.9 billion to the winners of its first annual Hydrogen Allocation Round using a similar CfD mechanism.
Nuclear and SMRs See Traction
Following a decade of stagnation after the Fukushima incident, nuclear power is experiencing a resurgence, driven by the need for energy security and decarbonisation. During the COP28 climate summit in December 2023, over 20 countries launched a declaration aiming to triple nuclear energy capacity by 2050. By December 2023, around 59 nuclear reactors, amounting to approximately 61 GW, were under construction worldwide. However, investment in the sector marginally declined to $32.7 billion (Source: BNEF) due to cost overruns and scheduling delays. As large nuclear reactors face constraints and safety concerns, there has been a shift towards Small Modular Reactors (SMRs). Governments are increasingly supporting SMR development, unveiling new funding plans in 2023. For instance, Canada initiated the Enabling Small Modular Reactors Programme, allocating $29.6 million to foster SMR supply chains. The US, Japan, South Korea, and the UAE pledged up to $275 million for an SMR project in Romania, and the US earmarked $72 million for its international SMR initiative.
Despite challenges in commercialising SMRs, countries like China, Russia, and the US are spearheading the sector with various designs for deployment. China, in particular, stands out with 36 nuclear reactors (both large and SMR) either under construction or approved, totalling 42 GW. The country plans to approve 6-10 new reactors each year until 2030, reflecting its significant commitment to nuclear energy expansion.
Electric Vehicle Adoption on the Rise
In 2023, investment in electrified transport surpassed renewable energy, increasing by 36% y-o-y to reach $634 billion (Source: BNEF). Electric vehicle (EV) sales rose significantly, with over 13.5 million EVs sold globally, marking a 30% increase from 2022 (Source: BNEF). To support this growth, EV charging installations increased by ~50% to 4 million charging points in 2023 (Source: BNEF). Governments worldwide, including the US, Germany, the Netherlands, the UK, and Europe, rolled out subsidy programmes to bolster the charging infrastructure. Europe emerged as a leader in deploying ultra-fast chargers, with the number of ultra-fast connectors tripling from 23,000 in 2021 to 76,000 in 2023 (Source: BNEF). The Netherlands led public charging implementation, boasting the largest public charging network in Europe, aligned with concerted efforts to facilitate widespread EV adoption and promote sustainable transportation solutions.
Carbon Markets Take Flight
In 2023, significant progress was made globally in fostering greener economies and advancing climate objectives through carbon management mechanisms. The European Union launched the Carbon Border Adjustment Mechanism (CBAM) to reduce emissions by introducing a carbon tariff on carbon- intensive imports. The UK tightened its Emission Trading System (ETS), reducing emission caps across sectors and extending coverage to include domestic maritime transport from 2026 and the waste incineration industry from 2028. The US stock exchange Nasdaq launched a digital carbon credit service to streamline issuance and settlement mechanisms, enhancing market scalability. In South America, Chile introduced a domestic green investment certification scheme, allowing companies to offset carbon taxes through verified emission capture or reduction projects. Suriname emerged as a frontrunner, poised to become the first country to sell carbon credits by leveraging its dense forests for carbon removal. In Asia, Indonesia launched a carbon trading exchange, inviting on-grid coal plants with a minimum of 100 MW to participate, and South Korea announced plans to diversifying existing financial products, stabilise the carbon market, and strengthen trading foundations to address low trading volume and high price volatility.
Indian power sector
Indian economy continued to grow at a robust rate of 8.2% (Source: MoSPI) in FY24, surpassing the previous years (FY23) growth rate of 7%. This growth was driven by private consumption and investment, spurred by government policies to improve infrastructure, logistics, and the overall business ecosystem. The energy requirement, closely associated with GDP, rose by 7.4% (Source: CEA) to reach 1,626 billion units (BU) in FY24. Peak demand also soared by 13% to a new high of 243 GW (Source: CEA), with the peak observed in September 2023, an unusual occurrence typically seen in summer months. The irregular monsoon rainfall led to a 17% y-o-y dip in hydroelectric power generation (Source: CEA), increasing reliance on thermal generation. To ensure energy security, the government mandated blending 6% imported coal for domestic coal-based plants. The imported coal based plants were directed to run at full capacity, first till Sep 2023, and then to June 2024 and subsequently to mid-October 2024. Additionally, several states announced new thermal capacities to meet growing electricity demand.
The distribution and transmission sectors witnessed significant developments in FY24. Aggregate Technical and Commercial losses (AT&C) improved to 15.4% in FY23 (Source: 12th Annual Integrated Rating & Ranking: Power Distribution Utilities), driven by enhancements in billing efficiency (87.0%) and collection efficiency (97.3%). In the transmission sector, in FY24, bidding for 29 projects worth 53,000 crore was concluded under Tariff Based Competitive Bidding (TBCB) mode, aimed at building new transmission corridors and upgrading existing infrastructure.
Renewable energy saw a continued push, with the government directing the tendering of 50 GW of renewable capacities annually until FY28. In 2023, a record 22.9 GW of capacities were auctioned, more than doubling the previous years figure. To address the intermittency issues of renewable power, the state governments and power utilities announced the establishment of Pumped Storage Plants (PSP). Alongside these developments, record-low tariffs were discovered for tenders with battery energy storage. On the solar manufacturing front, manufacturers, aided by the Production Linked Incentive (PLI) scheme, geared up for commissioning their slated cell and module capacities by the end of 2024.
Electric vehicle (EV) sales in India crossed 1.5 million units in 2023 (Source: Vahan Dashboard), growing by ~49% y-o-y despite significant cuts in FAME II subsidies for electric two- wheelers. Additionally, electrification continued to grow with central government approving the "PM - eBus Sewa" program to deploy 10,000 electric buses nationwide, and by introducing standard operating procedures under the PLI program to guide automotive companies in testing and certifying their products. In alignment, there was a surge in EV charging infrastructure initiatives by leading automotive companies.
Generation
Indias installed generation capacity stood at 442 GW (Source: CEA) as of March 31, 2024 with a capacity addition of 26 GW in FY24. The share of thermal capacities in the total installed generation capacity declined from 64% in FY19 to 55% in FY24, while the share of renewable capacities grew from 22% to 33%. Approximately 70% of the total capacity additions of 26 GW in FY24 came from renewable sources (Solar - 15 GW and other renewables - 3 GW). Around 6 GW of coal-based plants were commissioned, constituting another 23% of the additions. Notably, two nuclear power units of 700 MW each were commissioned at the Kakrapar nuclear power station in Gujarat by Nuclear Power Corporation of India Limited (NPCIL), marking a significant event given the six-year gap since the last nuclear plant commissioning in 2017. Additionally, private participation in the nuclear sector is being explored, with the government planning to invite private firms to invest about $26 billion to increase non-fossil fuel generation capacity. Private utilities will be allowed to acquire land, water, and undertake construction in areas outside the reactor, while NPCIL will continue to retain the right to build and operate the nuclear island stations.
Thermal Generation
Amidst a surge in economic activity and erratic patterns of rainfall, power demand soared to new highs. In the absence of round-the-clock (RTC) renewable power, the industry reverted to thermal based generation. Taking cognizance of the evolving situation, the power ministry revised the expected thermal capacity additions from 41 GW to approximately 88 GW over the next 5-8 years. Concurrently, the government urged the industry to invest in thermal capacities, which elicited enthusiastic participation from private players. As of February 2024, around 27 GW of thermal capacity was under construction, approximately 12 GW had been bid out, and about 19 GW was in the clearance stage. (Source: Press Information Bureau).
In addition to adding new thermal capacities, the Union Ministry attempted to expedite sale of stressed thermal assets through the National Company Law Tribunal (NCLT), attracting interest from private players. 14 companies eyed the 300 MW Bhadreshwar Power Plant in Gujarat, while 18 bidders vied for the 1200 MW Coastal Energen Plant in Tamil Nadu. Additionally, the Punjab government acquired the 540 MW Goindwal thermal power plant for 1,080 crore, beating 11 contenders. This acquisition not only marked a strategic investment for Punjab but also set a precedent for a government acquiring a stressed thermal asset.
Renewable Generation
The unwavering focus on the renewable energy sector propelled Indias capacity to new heights over the years. According to data from the CEA, the share of countrys installed renewable energy capacity in the total installed generation capacity surged from 22% (78 GW) in FY19 to 33% (144 GW) as of FY24. The share of renewable generation in total electricity generation also increased from 9% to 13% during the same time frame.
Following the Ministry of New and Renewable Energys (MNRE) directive to tender 50 GW of renewable capacities annually to meet the target of installing 500 GW of non-fossil capacity by 2030, India auctioned a record-high 22.9 GW (Source: BNEF) of renewable capacities in 2023. This figure, more than double that of 2022, was primarily driven by an increase in solar volumes (70%) and complex bids (24%). Complex bids, which necessitate a combination of wind, solar, and energy storage, witnessed record-high activity with auction volumes surpassing 5 GW. Continuing with the momentum, in January-March 2024, the share of complex bids comprised close to 50%.
While the industry saw increased movement in the bidding and tendering space, the tariffs of solar and wind auctions followed an upward trajectory, registering an increase of ~3% and ~10%, respectively, in 2023 y-o-y. The rise in tariffs was partly attributed to increased borrowing costs.
In pursuit of Indias net-zero goal by 2070, the imperative for round-the-clock (RTC) power has underscored the necessity of energy storage solutions. Consequentially, significant developments were seen in both the Pumped Storage Plants (PSP) and Battery Energy Storage Solution (BESS) sectors. Following the governments issuance of final guidelines in April 2023 to encourage PSP development, numerous states and private players enthusiastically announced their participation in this sector. As of April 2024, 4.7 GW of PSP capacity was operational, with 4.1 GW under construction. The capacity under survey and investigation saw a rapid increase from December 2022 to April 2024, more than doubling from 25 GW to 60 GW. 75% of this 60 GW can be attributed to private players, signaling their keen interest in PSP. Additionally, the state run NHPC committed to developing 20 GW of PSP capacities.
Alongside PSP, BESS also gained momentum, with the government supporting the sector by announcing viability gap funding amounting to 194 billion. This aligns with the governments objective to introduce 4,000 MWh of battery energy storage capacities in the country over the next few years. Along with rising interest, the falling cost of batteries is also expected to promote BESS adoption. The recently concluded auction for GUVNLs 500 MWh BESS tender in March 2024 saw a record-low tariff at 448,996/MW/month.
With the addition of large-scale renewable capacities in 2023, the nation witnessed the addition of 3 GW of rooftop solar (RTS) power capacity (Source: JMK Research). This surge came as part of efforts to achieve the governments ambitious vision of 40 GW of installed rooftop solar capacity by March 2026. In January 2024, the government launched the "PM Surya Ghar Muft Bijli Yojana" to further promote RTS adoption. With a total outlay of 75,000 crore, this initiative aims to provide financial assistance for installation of rooftop solar systems for 1 crore households.
The year 2023 also saw significant developments in the offshore wind space. The government released a revised strategy for the development of offshore wind energy projects, indicating a bidding trajectory for the installation of 37 GW capacity. Additionally, it also released the "Offshore Wind Energy Lease Rules, 2023" to regulate the allocation of offshore wind sea blocks to developers. In line with this, NHPC issued an expression of interest (EoI) from India-based and global companies to empanel for developing offshore wind power projects in India.
Distribution
The governments efforts to turn around the discoms over recent years bore fruit in 2023, as highlighted by the 12th edition of the Integrated Rating of Discoms. The distribution sector saw significant improvement during the year. AT&C losses improved to 15.4% in FY23 from 21.2% in FY21. Billing efficiency and collection efficiency also improved to 87.0% and 97.3% in FY23 from 84.8% and 92.9% in FY21, respectively. The discoms liquidated 48,000 crore in FY23, which helped to bring down days payable (to generation companies & transmission companies) from 166 in FY22 to 126 in FY23 (Source: 12th Annual Integrated Rating & Ranking: Power Distribution Utilities). As of November 2023, Detailed Project Reports (DPRs) for projects totalling INR 2.5 lakh crore (Source: Press Information Bureau) and impacting 30 states/union territories, were approved under the RDSS. Moreover, the financial support provided by institutions like Power Finance Corporation Limited (PFC) and Rural Electrification Corporation Limited (REC) played a pivotal role. Approximately 1.1 lakh crore in loans were disbursed out of the sanctioned outlay, further fuelling the progress of distribution sector initiatives.
In an effort to combat commercial losses, the government also targeted the installation of 222 million smart meters. By April 2024, out of the sanctioned 222 million smart meters under the National Smart Grid Mission (NSGM), 10.8 million meters were already installed (Source: National Smart Grid Mission portal). Notably, Telangana achieved 100% installation, while others such as Chhattisgarh and Jharkhand were yet to commence installation.
Encouraged by the success of RDSS Phase-I, the government is now considering the launch of the next phase of RDSS.
Transmission
Indias transmission line and substation capacity stood at ~4.85 lakh ckm and 12.51 lakh MVA, respectively, as of 31st March 2024, reflecting an increase of about 14,203 ckm and 70,728 MVA since March 2023. Significant investments and activities are expected in the transmission sector over the next few years to enable the growth of renewable capacities. As per the recently issued draft National Electricity Plan Vol-II Transmission, Indias cumulative installed generation capacity would reach 900 GW by 2032, and to support this, the transmission sector would see the addition of about ~2.29 lakh ckm of transmission lines and ~13 lakh MVA of substation capacity from 2022 to 2032. To achieve this addition, cumulative investment in the transmission sector anticipated for the period 2022-27 stood at 4.75 lakh crore, of which 1.61 lakh crore would be invested to implement intra-state schemes. Aligned to the intent of promoting private sector participation and bringing in efficiencies, most of this investment is expected to be routed through Tariff-Based Competitive Bidding (TBCB) of projects.
In FY24, bidding for as many as 29 projects worth 53,000 crore (including both Inter State Transmission System (ISTS) and Intra State Transmission System (InSTS)) was successfully concluded for implementation under TBCB mode. These have been won by as many as 10 different developers (1 PSU and 9 private developers). As of March 31, 2024, 106 Inter-State transmission schemes (ISTS) were awarded through TBCB, out of which 53 have been commissioned, 49 are under construction, and the rest have been stalled or scrapped.
Electric Vehicle
Indias electric vehicle sales jumped 49% y-o-y in 2023 to around
1.5 million units, constituting ~6.5% of the total vehicles sold. This growth defied the significant setback encountered by the sector following the reduction in FAME II subsidies for electric two-wheelers starting June 2023. The reduction saw demand incentive getting slashed from 15,000/kWh to 10,000/kWh, with the incentive cap being adjusted from 40% to 15% of the E2Ws ex-factory price. The impact of this move was felt across the electric two-wheeler market, with major players hiking vehicle prices resulting in an immediate drop in sales. However, by the end of the year, sales stabilized, supported by state government initiatives. The governments of Delhi and Goa advised service providers to achieve 100% and 30% electrification of the commercial fleet operating in their state respectively. Additionally, the Union Government directed Oil PSUs to spearhead the installation of approximately 7,000 EV chargers by March 2024. Tamil Nadu also outlined plans for a five-fold increase in EV charging stations In the next 1-2 years. Meanwhile, the government of Uttar Pradesh and CESL (Convergence Energy Services Limited) issued tenders for charger setup in public-private partnership (PPP) mode to expedite deployment.
Power Trading
In FY24, ~213 BUs of electricity have been traded in the short- term power market, compared to a total of 194 BUs traded during FY23. Approximately 61% of this volume is expected to be traded through Power Exchanges, with about 13% each traded through traders and directly in bilateral mode, and the remaining volume through DSM. Due to high competition among power traders, trading margins have remained under pressure. The market is concentrated with ~4 major players, including Power Trading Corporation of India Limited, Tata Power Trading Co. Ltd, NTPC Vidyut Vyapar Nigam Ltd., and Adani Enterprises Limited. The remaining traders operate in limited market segments or regional pockets.
The average clearing price for the Day Ahead Market (DAM) in FY24, at ~5.24 per unit, decreased by nearly 12% compared to the previous fiscal. The prices discovered in the tenders floated by Distribution companies for the upcoming months of 2024 remain high, ranging from 6-10/kWh.
Regulatory and Policy Developments
Over the past year, the government has made several significant changes and announcements aimed at maintaining and fostering growth in the Indian power sector. Key developments include:
A. Act, Rules Pertaining to Electricity Sector
1. Electricity Amendment Rules and Consumer Rules by
Ministry of Power
(i) Revised timelines for providing new connections/ modifying existing connection
(ii) Non requirement of transmission license for setting up dedicated transmission line by a generating co./captive generating plant, bulk consumers and ESS (Energy Storage System) for loads > 25MW for connection to ISTS and > 10 MW in case of InSTS
(iii) Methodology for determination of wheeling charges, additional surcharge and STU charges
(iv) Creation of regulatory assets only under exceptional circumstances and provisions for time bound liquidation of the same
(v) Framework for financial sustainability -AT&C loss reduction trajectory to be approved by the central government and agreed by the state government; DISCOM to share 2/3rd of losses and 1/3rd of the gains due to deviation from approved loss reduction trajectory; geo-tagging of assets and maintenance of fixed asset register; RoE shall be aligned with that pronounced by CERC for generation/ transmission & modified as per the risks in distribution business
(vi) Changes in the captive rules to allow consumption by subsidiary and parent companies of a captive user to be considered for meeting the consumption criteria of the captive user
2. Amendment in Late Payment Surcharge (LPS) Rules 2022 by MoP- Rule 9
Generators are mandated to sell un-requisitioned surplus (URS) on the power exchange if power is not scheduled by the beneficiary at least 2 hours before the end of the time for placing proposals or bids in the DAM. Failing this, the fixed cost recovery of the generator will be reduced accordingly. The generator shall offer the URS on the exchange at a price not exceeding 120% of its ECR.
3. Renewable Purchase Obligation (RPO) by MoP
MoP has published the final RPO trajectory for the period 2024-25 to 2029-30, under the Energy Conservation Act, 2001. RPO signifies minimum share of consumption of non- fossil sources (RE) by designated consumers as energy or feedstock. The designated consumers include electricity distribution licensee, open access consumers and captive consumers. Total RPO would start from 29.91% in FY25 and gradually increase to 43.33% in FY30 and would be categorized under wind, hydro, distributed RE and other RE category.
4. Draft Green Credit Programme Implementation Rules 2023 by The Ministry of Environment, Forest and Climate Change
The objective is to create a market-based mechanism for providing incentives in the form of green credits to individuals, farmer producer organisations, cooperatives, forestry enterprises, sustainable agriculture enterprises, urban and rural local bodies, private sectors, industries and organisations for environment positive actions. The green credits will also be made available for trading on a domestic market platform.
5. Offshore Wind Energy Lease Rules, 2023 by Ministry of
External Affairs
Under the rules, Central Government may lease out offshore area within Exclusive Economic Zone for Offshore Wind Energy Project and Offshore Wind Transmission Project.
B. Regulations and Guidelines/Frameworks pertaining to Electricity Sector
1. Carbon Credit Trading Scheme (CCTS) by MoP
The scheme covers the overall Institutional Structure of the proposed Indian Carbon Market (ICM) including the Governing Board, ICM Administrator, Registry, Trading Regulator, Technical Committee, Accredited Carbon verifiers, Compliance mechanism, Detailed Procedure for Operationalization of the ICM etc. Development of Carbon Trading Market is one of the objectives of the Energy Conservation Act 2022.
2. Uniform Renewable Energy Tariff Mechanism and Procedure by MoP
This shall include a Central Pool for each RE source/ technology applicable for a duration of 3 years. Each pool shall include all projects of a specific RE technology commissioned after coming into force of the rules. A Uniform RE Tariff computed (weighted average) for the given pool shall be applicable to all end procurers. The objective is to ensure fair and consistent pricing of renewable energy.
3. Guidelines for TBCB for Procurement of Firm and Dispatchable RE Power from Grid Connected RE Power Projects with Energy Storage Systems by MNRE
Guidelines are meant for discom procurement bids, seeking round the clock/demand based RE power. The energy storage system (ESS) shall need to be charged from RE source to qualify as RE power. Bidder/developer shall set up storage capacity itself; or tie up with energy storage system developers to meet the project parameters for firmness and dispatchability.
4. Guidelines for Benchmarking of O&M norms for Distribution Utilities by CEA
The report covers O&M benchmarking criteria for sub- transmission and distribution system; distribution transformers; smart meters; overhead lines; maintenance practices and IOT based monitoring (preventive maintenance; predictive maintenance; proactive maintenance; reactive /break down maintenance).
5. National Electricity Plan 2022-32 (Volume 1- Generation) by CEA
The Plan includes a review of the period 2017-22, detailed capacity addition requirement during the years 2022-27 and prospective planned projections for the years 2027-32. The plan envisages increase in Indias installed generation capacity to ~600GW and ~900GW with share of non-fossil capacities at 57% and 68%, by FY27 and FY32 respectively.
6. Cyber Security Policy for Discoms by CEA
The policy will serve as a model document to help discoms prepare their own cyber security policies.
7. Guidelines on Demand Forecasting for medium and long term by CEA
The aim is to provide guidance to power utilities at state level to undertake demand forecast holistically, in view of uncertainties in electricity demand due to various emerging factors such as penetration of electric vehicles, solar rooftops, green hydrogen etc.
8. Final Phasing Plan for implementation of flexible operation (40% Technical Minimum) of coal based thermal generating stations issued by CEA
Implementation shall happen in four phases and various generating stations have been allocated under each phase with timelines for completion of upgradation/retrofitting for flexible operation including the study and field tests.
9. Electricity Distribution Network Planning Criteria by CEA
This includes stages involved in short /medium/long term planning; load forecasting criteria for sub-transmission system (33 kV, 22 kV); primary distribution (11 kV) and secondary distribution (LT system); solar rooftop system; electric vehicles.
2. tata power business portfolio, opportunities and outlook
The Companys generation business operates under various business models across divisions in the domestic as well as international markets with the PPA / Fixed Tariff model contributing to the largest share of the generation segment. The following is a summary of the different business models under which various generation assets of the Company operate:
| Generation type | Model | Returns | Project | Capacity (MW) | % Overall Capacity |
| Thermal | Regulated Tariff | Regulated Return on Equity (ROE) | Mumbai operations-Trombay, Maithon, Jojobera (Unit 2 and 3), TPDDL-Rithala | 2,328 | 15.83 |
| PPA / Fixed Tariff (Bid / Others) | Bilateral Agreement + Bid Driven | Jojobera (Unit 1and 4), Mundra, Kalinganagar-IEL-40 MW | 4,378 | 29.77 | |
| Captive | Bilateral Captive Agreement | IEL (Unit 5), CKP (Indonesia) | 174 | 1.18 | |
| Under Platform Management | PPA Based | Prayagraj | 1,980 | 13.46 | |
| Sub-Total | 8,860 | 60.24 | |||
| Clean and Green | PPA / Fixed Tariff (Renewables) | Feed In Tariff + Bid Driven | Wind, Solar and Hybrid Projects (Domestic), TPTCL, TPDDL | 4,121 | 28.02 |
| Regulated Tariff | Regulated Return on Equity (ROE) | Mumbai operations-Hydro | 447 | 3.04 | |
| PPA / Fixed Tariff (Bid / Others) | Bilateral Agreement + Bid Driven Itezhi-Tezhi Hydro Projects, Georgia Hydro | 307 | 2.09 | ||
| Captive | Bilateral Captive Agreement | IEL (Unit 6, KPO), Captive Renewable project | 526 | 3.58 | |
| Merchant | Market Driven | Haldia, Dagachhu, Renewables- Solar-TPTCL | 446 | 3.03 | |
| Sub-Total | 5,847 | 39.76 | |||
| Total | 14,707 | 100 |
The Company has significantly expanded its footprint in the power distribution business through the PPP model and is now present in the following areas.
| Model | Returns | Distribution Area / Entity | No. of Customers (in mn) |
| Distribution Licensee | Regulated Return on Equity (ROE) | Mumbai Distribution | 0.77 |
| Public-Private-Partnership (PPP) | Regulated + Bid conditions driven | TPDDL, TPCODL, TPWODL, TPSODL and TPNODL | 11.53 |
| Distribution Franchisee (DF) | Input energy growth and investment driven | TPADL | 0.17 |
| Total | 12.47 |
The Indian market continues to remain the primary focus of business for the Company. Currently, the domestic market accounts for more than 96% of its generation capacity. As highlighted earlier, the Company has plans in place to grow in the areas of renewable generation, transmission, distribution and new and service-led businesses.
Thermal and Hydro Generation
Aligned with its goal of achieving carbon net zero before 2045, the Company plans to limit its exposure to coal-based projects and does not intend to expand its existing portfolio. This approach includes offsetting the generated carbon dioxide (CO2) to achieve net-zero emissions of greenhouse gases. The Companys focus on carbon neutrality will not only reduce carbon emissions but also decrease the concentration of air pollutants, thus improving air quality. While there are no plans for greenfield or brownfield expansions in the near term, the Company will maintain its existing thermal and hydro operations sustainably and will evaluate inorganic opportunities in hydro power generation assets.
The Companys recent collaboration with the Government of Maharashtra marks a significant step towards sustainable energy development. By signing the Memorandum of Understanding (MoU) to establish two pumped storage hydro projects totalling 2,800 MW, the Company underscores its commitment to a greener future. These projects not only signify a commitment to clean energy adoption but also represent a strategic move to enhance grid stability and facilitate the seamless integration of renewable energy sources. With their considerable capacity, scalability, and efficiency, these projects are poised to revolutionise the energy landscape, paving the way for a more sustainable tomorrow.
The Company is also exploring opportunities in Bhutan for developing another hydro project of 600 MW. These initiatives align with broader efforts to mitigate climate change and reduce reliance on fossil fuels, reflecting the Companys vision of positively contributing to the environment and society. Through such ventures, the Company continues to lead the transformation of the energy sector, leaving a lasting impact for future generations.
Consumer Businesses
The Company has major plans to scale up consumer businesses, including rooftop solar, EV charging, microgrids, energy efficiency solutions, and home automation.
EV Charging
Rising fuel costs and growing awareness of climate change are driving individuals to adopt greener mobility options, such as electric vehicles (EVs). The governments active promotion of EV adoption through subsidies has resulted in rapid growth in EV sales in India. In response, the Company is pioneering next-gen EV charging solutions, covering home, workplace, fleet, and captive charging (including e-bus charging) through various models and approaches. The Company is also evaluating opportunities in the electric 3-wheeler and 2-wheeler charging market and is collaborating closely with OEMs across vehicle segments to offer comprehensive solutions. The Company undertook several initiatives to promote EV charging solutions, including the Tata Power EZ Charge mobile application, which hosts high-capacity chargers.
The Company has entered into new collaborations with several government and private bodies for EV charging solutions, including IOCL, Everest, CAB-E, Zoom Car, and the Kolkata Airport Authority, as well as prominent residential societies like Rustomjee Oriana, Rustomjee Elanza, Lodha The Park, Kalpataru Pinnacle, Lodha Primero, and The Reserve by Runwal. As of March 31, 2024, Tata Power had installed over 86,000 home chargers and more than 5,400 public and semi-public charging points, along with over 850 bus charging points in Mumbai, Delhi, and Ahmedabad.
To ensure a smooth and hassle-free charging experience, we introduced Radio-Frequency Identification (RFID) cards this year, enhancing the customer journey and providing a seamless charging experience.
Rooftop Solar
In the rooftop solar sector, the Company has a presence in more than 310 districts across India and offers differentiated value-added services for residential, commercial, and industrial segments, including corporates, MSMEs, institutions, and small commercial establishments. Recognising the opportunities in rooftop solar, the Company is developing new offerings and models to enhance adoption among consumers, including financing solutions and other value-added services.
Microgrids
The Company has installed 196 microgrids as of March 2024 and is evaluating various approaches and models for scaling up the business. These microgrids have benefited a rural consumer base of more than 22,000 people. As part of its value-added services, the Company has launched a mobile app and EMI scheme for new connections and provides energy-efficient appliances.
Home Automation
In 2021, the Company ventured into IoT-based smart energy management home automation solutions, launching product categories in Converters, Smart Touch switches, and energy- efficient lights. To meet market demands from Architects, Interior Designers, etc., the Home Automation business expanded its product range by introducing Glass Finish Premium Touch switches for zen next homes, offering customisation options.
The business strategy focused on developing an end-to-end integrated solution with Home Automation and security systems for multi-apartment building projects, resulting in volume orders from reputed builders in tier-1 and tier-2 cities. The Company conducted a successful pilot for the Automated Demand Response (ADR) program through Tata Power EZ Home devices in Delhi and Mumbai, reducing load by 8.5% on average and 15% during peak demand, a first-of-its-kind program for residential customers in India.
To enhance business and customer services, the Company engaged with exclusive channel partners experienced in the automation industry, totalling 54+ in 96 cities. In terms of innovations, the Company obtained a patent for a retrofittable Wi-Fi-based IR module for smart air conditioners and filed another patent for protecting IP related to Energy Usage and Analytics using Tata Power EZ Home automation solutions.
The Company had order book of more than 56,000 units in FY24 amounting to ? 10.65 crore.
3. business performance
The Companys consolidated operations are categorised into four segments: Generation, Transmission & Distribution, Renewables, and Others. A report on the performance and financial position of each subsidiary, JV, and associate company is provided in Form AOC-1.
In FY24, the Companys financial performance was influenced by various factors, including reduced losses at the Mundra plant, a favourable regulatory order in Odisha Discoms, expansion in renewable energy capacity, enhanced execution in the Solar Utility Scale EPC business, improved profitability in Tata Projects and consistent operational excellence across all businesses. Although profits from coal companies declined, the Company benefits from a substantial portion of its core business, ensuring a strong financial foundation. Additionally, the Companys portfolio is strategically structured to seize opportunities in favourable market conditions, particularly within its market- linked businesses.
renewables
RE Generating Companies (4,515 MW capacity)
Type of Entity: Subsidiary [Tata Power Renewable Energy Limited (TPREL), Walwhan Renewable Energy Limited (WREL), TP Wind Power Limited, TP Saurya Limited, Tata Power Green Energy Limited, Chirasthayee Saurya Limited, TP Kirnali Limited and Captive Cos (42 Nos)]
| Particulars | FY24 | FY23 |
| Sales (MUs) | 7,962 | 7,093 |
| Revenue from Operations (Rs crore) | 3,426 | 3,207 |
| PAT (Rs crore) | 583 | 592 |
The Companys higher sales were due to addition of 597 MW capacity during the year.
PAT for the year is lower on account of one-time impact in previous year pertaining to delayed payment charges received from Discoms offset by additional capacity commissioned.
At the end of FY24, total renewable portfolio stands at 9.4 GW including 4.9 GW of projects under various stages of implementation. The total operational capacity is 4,515 MW, which includes 3,485 MW of solar and 1,030 MW of wind capacity.
Tata Power Solar Systems Limited - TPSSL
Type of entity: Wholly-owned subsidiary of TPREL
| Particulars | FY24 | FY23 |
| Revenue from Operations (in Rs crore) | 11,726 | 6,876 |
| PAT (in Rs crore) | 391 | 222 |
TPSSL continues to demonstrate strong delivery driven by growing demand for renewable power in the country and capabilities of the Company which have been augmented over time, despite several external market challenges that have impacted the renewables business in India during FY24.
During the year, the revenue has grown approximately 71% y-o-y on account of execution of large volume of utility scale projects. The Company has also seen significant growth in the rooftop solar and group captive domains. This has enabled the Company to manage better margins as compared to previous years.
The Company has an open order book of more than 13,000 crore pertaining to large scale utility scale projects and more than 2,800 crore pertaining to rooftop projects and group captives as on March 31, 2024.
TP Solar Limited -TPSL
Type of Entity: Wholly-owned subsidiary of TPREL
| Particulars | FY24 | FY23 |
| Revenue from Operations (in Rs crore) | 233 | Nil |
| PAT (in Rs crore) | (36) | (3) |
TP Solar Limited, located in Tirunelveli, Tamil Nadu, completed the construction of its module facility and commenced commercial production in February 2024, following the attainment of necessary approvals from various statutory bodies.
Currently, all 4 GW module production lines are operational and in the production ramp-up phase, producing high-quality bifacial modules. Additionally, the cell production facility is nearing the final stages of construction and likely to be commenced in the next financial year.
Once commissioned, TP Solar will be one of the largest integrated cell and module manufacturer in India, utilising industry- leading technology.
TP Renewable Microgrid Limited (TPRMG)
Type of entity: Wholly-owned subsidiary
| Particulars | FY24 | FY23 |
| Revenue from Operations (in Rs crore) | 8 | 7 |
| PAT (in Rs crore) | (30) | (14) |
TPRMG has been addressing economic and energy poverty by providing access to clean, affordable, reliable, and quality power through the establishment of microgrids in rural villages across three districts in Bihar and seven districts in Uttar Pradesh. As of March 31, 2024, the Company has commissioned 196 microgrids with a total installed capacity of ~6 MW, serving more than 22,000 rural consumers.
New segments of high power consumption rural businesses, such as bandsaw machines and sugarcane crushing machines, have been added to the TPRMG portfolio. To support these high captive loads, TPRMG has made available Premium Efficiency Class (IE3) motors and pumps (85% to 90% efficient) compared to High Efficiency Class (IE2) (80% to 85% efficient).
TPRMG has also supported rural enterprises in converting waste to wealth by using microgrid power to compress and sell plastic bottles and other materials. Recently, TPRMG enabled entrepreneurs to move up the plastic value chain by providing electric motors for plastic grinding machines powered by microgrids, replacing diesel engines.
Collaboration with strategic partners not only reinforces TPRMGs effectiveness but also enhances income generation opportunities. SIDBI has financially supported these programmes, encouraging 1,000 rural village-level entrepreneurs to use green power supplied by microgrids. Similarly, partnerships with SIDBI, TPCDT, and Usha International have promoted the use of green power among women entrepreneurs for sustainable living through a skilling and production approach.
TPRMG has entered into a Memorandum of Understanding (MoU) with the Centre for Development of Advanced Computing, Trivandrum (C-DAC), a premier R&D organisation under the Ministry of Electronics and Information Technology (MeitY), and Visvesvaraya National Institute of Technology Nagpur (VNIT-Nagpur) to improve microgrid performance through advancements in power electronics. Furthermore, TPRMG has signed an MoU with Energy Efficiency Services Limited (EESL), an Energy Service Company (ESCO), to provide rural consumers with access to energy-efficient cooling and heating technologies.
To leverage energy storage technologies, TPRMG has also entered into an MoU with the Indian Institute of Technology Kanpur (IIT-K) and Offgrid Energy Labs, Inc (Offgrid).
TATA power hydros (447 MW)
Type of entity: Division
| Particulars | FY24 | FY23 |
| Sales (MUs)* | 1,536 | 1,550 |
* Includes sales to Companys Distribution Division
During the year, generation were marginally lower with respect to FY23. Availability for the year was 99.0% against 98.4% in previous year. Auxiliary Power Consumption (APC) continued to reduce through various energy conservation measures under sustainability initiatives and six-sigma projects.
mundra, coal and related infrastructure companies
Mundra Thermal Plant (4,150 MW)
Type of entity: Division
| Particulars | FY24 | FY23 |
| Sales (MUs) | 18,671 | 10,744 |
The Mundra plant operated under Section 11 of the Electricity Act, 2003, issued by the Ministry of Power (MoP), from April 16, 2023, to March 31,2024, resulting in an increase in sales volume. The plant continues to engage with procuring states to find a solution for its long-term commercial viability, and discussions for a supplementary Power Purchase Agreement (PPA) with procurers are ongoing. Efforts to reduce losses include initiatives such as sourcing low-cost coal from other geographies and increasing the blending of low-calorific-value coal.
Construction work for setting up the flue gas desulphurisation (FGD) is expected to be completed as per the agreed timelines.
coal and infrastructure companies
The Company, through its subsidiary, holds a 30% stake in PT Kaltim Prima Coal (KPC), which is a strategic asset used to hedge against imported coal price exposure at Mundra and is an important part of the supply chain for its coal off-take requirements. Additionally, the Company holds a 26% stake in PT Baramulti Suksessarana Tbk (BSSR) and PT Antang Gunung Meratus (AGM) through its subsidiary.
During the year ended March 31,2024, the Company completed the sale of PT Arutmin Indonesia and related infrastructure companies (classified as held for sale) and recognized a profit of 140 crore. The buyer deducted 102 crore in withholding tax from the sales consideration for the assets mentioned above, and this deduction has been recorded as a tax expense.
PT Kaltim Prima Coal, Indonesia
| Particulars | FY24 | FY23 |
| Coal Production (million tonnes) | 56.8 | 50.1 |
The coal price realisation for the year was at $83.7/tonne as compared to $140.1/tonne in the previous year due to lower coal prices in the market.
PT Baramulti Suksessarana Tbk and PT Antang Gunung Meratus, Indonesia
| Particulars | FY24 | FY23 |
| Coal production (million tonnes) | 22.7 | 17.9 |
Coal production has increased to cater to higher demand from the Chinese and Indonesian market for low Calorific Value (CV) coal. The coal price realisation for the year was at $49.1/tonne as compared to $68.3/tonne in the previous year.
PT Nusa Tambang Pratama, Indonesia (Infrastructure Company)
| Particulars | FY24 | FY23 |
| Revenue from Operations* (in Rs crore) | 704 | 620 |
| PAT* (in Rs crore) | 359 | 242 |
* Figures are on 100% basis. The Companys share is 30%
PAT is higher mainly due to higher tonnage of coal handled during the year due to acquisition of Bengaluru port and favourable forex movements between USD-IDR. Also, previous year includes fair valuation loss (notional) on transfer of Arutmin
assets to PT Mitratama Perkasa (PTMP) as part of Arutmin coal asset sale.
Trust Energy Resources Pte. Limited - TERPL
Type of entity: Wholly-owned subsidiary of Tata Power International Pte Limited (TPIPL)
| Particulars | FY24 | FY23 |
| Revenue from Operations (Rs crore) | 913 | 650 |
| PAT (Rs crore) | 1,449 | 55 |
Revenue has increased on account of higher number of shipments performed and due to increase in average bunker price of shipments.
PAT has increased mainly due to one-time exceptional gain of 1,240 crore from the sale of shares in PT Sumber Energi and higher profit margins from the shipments performed during the year.
thermal generation
Maithon Power Limited- MPL (1,050 MW)
Type of entity: Subsidiary (Tata Power: 74%, DVC: 26%)
| Particulars | FY24 | FY23 |
| Sales (MUs) | 8,017 | 7,455 |
| Revenue from Operations (in Rs crore) | 3,360 | 3,029 |
| PAT (in Rs crore) | 449 | 345 |
Profit is higher mainly due to favourable order received from Central Electricity Regulation Commission (CERC), improvement in operational efficiency coupled with higher performance linked incentives.
Based on the Companys strong financial position, CRISIL has upgraded rating to "AA+/Stable" rating for long-term facilities and reaffirmed "CRISIL A1+" for its short-term facilities. CARE Ratings Limited reaffirmed its "CARE AA Stable" rating for long-term facilities.
The construction work for setting up of the flue gas desulphurisation (FGD) is expected to complete as per the agreed timelines.
Industrial Energy Limited- IEL (483 MW)
Type of entity: Subsidiary (Tata Power: 74%, Tata Steel: 26%) (Joint Venture under Ind AS)
| Particulars | FY24 | FY23 |
| Generation Sales (MUs) | 2,854 | 2,980 |
| Revenue from Operations (Rs crore) | 336 | 339 |
| PAT (crore) | 120 | 116 |
Figures are on 100% basis. The Companys share is 74%
IEL operates a 120 MW tolling coal-based plant in Jojobera. It also operates a 120 MW co-generation plant (Powerhouse #6) in Jamshedpur, inside the Tata Steel plant, which is based on blast furnace and coke oven gas. It also operates three units of co-
generation plant at Kalinganagar, Odisha and all the three units of 67.5 MW each are under operation by deploying production gases from Tata Steels plant. Additionally, it also has 40 MW of standby DG plant asset at Kalinganagar, Odisha.
PAT for the year is higher due to higher O&M entitlement escalation and lower deferred tax liabilities.
IEL is in the advanced stages of implementation of 120 MW PH7 captive power plant at Jamshedpur. The construction of boilers, chimney, and other miscellaneous buildings and structures is under progress. The project is expected to be commissioned by August 2025. Further, the Company is in an advanced stage of executing Domjuri Solar Plant (15 MW). Also, the construction work for setting up of the flue gas desulphurisation (FGD) is expected to complete as per the agreed timelines.
Trombay (930 MW)
Type of entity: Division
| Particulars | FY24 | FY23 |
| Sales (MUs)* | 4,839 | 4,474 |
* Includes sales to Companys Distribution Division
The station has achieved an availability of 94.4% in FY24 as compared to last years availability of 93.1%. Higher generation in FY24 is mainly due to better generation in Unit 7 and overhauling of Unit 5 in the previous year.
Jojobera (428 MW)
Type of entity: Division
| Particulars | FY 24 | FY23 |
| Sales (MUs) | 2,980 | 2,816 |
Jojobera plant achieved availability of 96.9% in FY24 as compared to last years availability of 94.7%. Impact on availability in FY24 is due to annual shutdown of only one unit as compared to the shutdown of two units in FY23.
Haldia (120 MW)
Type of entity: Division
| Particulars | FY24 | FY23 |
| Sales (MUs) | 871 | 862 |
Haldia has maintained its benchmark performance in FY24 through various process interventions and successful mitigation of internal challenges. The division achieved a Plant Load Factor (PLF) of 95% for the last two years and attained the lowest auxiliary consumption rate of 7.15%, the best value since inception.
transmission
Mumbai Transmission
Type of entity: Division
| Particulars | FY24 | FY23 |
| Grid Availability (%) | 99.9 | 99.9 |
| Transmission (Ckm) | 1,284 | 1,264 |
The transmission assets in the Mumbai license area achieved a grid availability of 99.9% in FY24, surpassing the MERC norm of 98%. The transmission division operates in city of Mumbai and MMR region, extending upto hydro generating stations in Raigad district, Maharashtra. This division has 30 receiving stations with over 10,000 MVA transformation capacity and transmission network spanning more than 1,200 Ckt Km. The divisions infrastructure includes 220 kV/110 kV overhead lines, underground cables, and hybrid lines, meeting 70% of Mumbais power demand.
Transmission Division has maintained the highest supply availability of 99.9% to consumers by deploying various in-house developed innovations and interventions by leveraging modern technologies like AI and Robotics.
Powerlinks Transmission Limited - PTL
Type of entity: Subsidiary (Tata Power: 51%, PGCIL: 49%) (Joint Venture under Ind AS)
| Particulars | FY24 | FY23 |
| Revenue from Operations (Rs crore) | 127 | 129 |
| PAT (Rs crore) | 82 | 81 |
* figures are on 100% basis. The Companys share is 51%
The average availability of the lines was maintained at same level as in previous year (i.e., 99.9%).
TP Power Plus Limited - TPPPL
Type of entity: Wholly-owned subsidiary
| Particulars | FY24 |
| Smart Meters Installed | 249 |
| PAT (Rs crore) | (3) |
Chhattisgarh State Power Distribution Co. Ltd (CSPDCL) initiated a tender for appointing an advanced metering infrastructure (AMI) service provider for consumer smart prepaid metering in Chhattisgarh under the Government of Indias RDSS Scheme. Tata Power took part and emerged as the successful bidder for Package-2, encompassing Raipur city and Raipur rural areas. Subsequently, TP Power Plus Limited, a Special Purpose Vehicle, was established on August 2, 2023, with the objective of installing and maintaining smart meters in Raipur and its surrounding areas.
TP Bikaner Ill Neemrana II Transmission Limited
Type of entity: Wholly-owned Subsidiary
| Particulars | FY24 |
| Transmission Ckm- under construction | 682 |
| PAT (Rs crore) | (1) |
Tata Power acquired TP Bikaner III Neemrana II Transmission Limited on December 27, 2023, through Tariff Based Competitive Bidding (TBCB) process. This SPV is formed to establish Inter- State Transmission System for evacuation of 7.7 GW of renewable energy from Bikaner Complex in Rajasthan. Currently, the project
is under construction and is likely to be commissioned by December 2025 with a license to operate for 35 years.
Jalpura Khurja Power Transmission Limited - JKPTL
Type of entity: Wholly-owned Subsidiary
Tata Power acquired Jalpura Khurja Power Transmission Limited on April 5, 2024, through Tariff Based Competitive Bidding (TBCB) process. This SPV is formed to establish the Companys first Greenfield Intra-State Transmission System in Uttar Pradesh. Currently, the project of 160 Ckm is under construction and is likely to be commissioned by October 2025 with a license to operate for 35 years.
distribution
Mumbai Distribution
Type of entity: Division
The highlights of the Mumbai Distribution Business are as follows:
| Particulars | FY24 | FY23 |
| Sales (MUs) | 5,793 | 5,462 |
| Consumer Base (Nos.) | 7,68,740 | 7,63,787 |
Sales increased by 6% during the year, primarily driven by rising
demand and the addition of new consumers. Here are some key
achievements and highlights: •
• Establishment of four All-Women Customer Relations Centres in Mumbai, managed entirely by a team of well- trained women, providing excellent customer services and ensuring customer delight.
• Implementation of the "Varishtha Nagrik Sanmman Seva," offering services such as cheque pickup to ensure the safety and convenience of more than 500 elderly consumers.
• Launch of the Abha Sakhi Sehat Camp, empowering over 100 women as Sehat Mitras in Mumbai, focusing on maternal health and conducting educational sessions on menstrual hygiene within the community.
• Conducting the Digi Get Lucky Campaign to encourage the adoption of paperless bills and digital payments. Currently, 53% of Mumbais Distribution Consumers have opted for paperless billing, and digital payments exceed 88%.
• Achievement of 8 gold and 1 silver award by the Mumbai Distribution team at the 37th Annual Chapter Convention on Quality Concepts (CCQC - 2023).
• Securing top ranks in the following categories at the 11th Innovation with Impact Awards for Discoms: Category A (Green Energy) - Rank 1, Category B (Efficient Operations) - Rank 1, and Category D (Technology Adoption) - Rank 2.
Tata Power Delhi Distribution Limited - TPDDL
Type of entity: Subsidiary (Tata Power: 51%, Government of National Capital Territory (NCT) of Delhi: 49%)
| Particulars | FY24 | FY23 |
| Sales (MUs) | 10,024 | 9,945 |
| Revenue from Operations (Rs crore) | 9,304 | 9,594 |
| PAT (Rs crore) | 453 | 440 |
In FY24, TPDDLs registered customer base increased to 20.26 lakh from 19.59 lakh in the previous financial year. AT&C losses for the year stood at 5.9%, down from 6.4% last year. The Company achieved an all-time high billing efficiency of 94.1% and liquidated approximately 800 crore of regulatory assets during the financial year.
TPDDL successfully met a peak load of 2,218 MW in FY24 with 100% system availability at 66/33kV. The System Average Interruption Frequency Index (SAIFI) improved to 8.4 from 10.6 in the previous year, a 21% improvement achieved through dedicated system improvement and maintenance using a TQM approach. The System Average Interruption Duration Index (SAIDI) also improved from 12.18 to 10.10 hours.
Key achievements and highlights include:
• Securing the highest rating of A+ in the Consumer Service Rating of Discoms published by the Ministry of Power for FY23 and achieving an "A" rating (stable trajectory) in the 12th integrated rating & ranking of Power Discoms by the Ministry of Power.
• Winning the ET Energy Leadership Awards 2023 in the categories of Power Distribution Company of the Year and Excellence in Customer Service (Distribution Sector).
• Collaborating with Power Finance Corporation Ltd (PFC) and New Energy and Industrial Technology Development Organisation (NEDO) of the Govt. of Japan for a pilot project on "Micro Sub-station using Power Voltage Transformer" to realize efficient power supply in areas with undeveloped distribution networks.
• Signing a MoU with the Administrative Staff College of India (ASCI) to advance capacity building in the power and renewable sector, fostering innovation and development in the power sector.
• Implementing Robotics Process Automation (RPA) in new connection/dues verification processes and applying for a patent for Meter installation Quality Check through Image Analytics.
• Installing a total of 4.3 lakh Smart Meters, with over 97,000 installations done in FY24.
• Increasing the Digital Payment Index to 90% in FY24 compared to 87% in the previous year.
TP Ajmer Distribution Limited - TPADL
Type of entity: Wholly-owned Subsidiary
| Particulars | FY24 | FY23 |
| Sales (MUs) | 555 | 548 |
| Revenue from Operation (in Rs crore) | 442 | 418 |
| PAT (in Rs crore) | 8 | 3 |
TPADL has operated as a power supply and distribution franchisee in Ajmer city for seven years, covering approximately 190 sq km. In FY24, it served 1.66 lakh consumers with a peak demand of 109.5 MW, a 16% increase from the previous year.
PAT increased mainly due to higher billing efficiency, a higher Average Billing Rate (ABR), and lower finance charges compared to the previous year. Various initiatives were implemented to enhance customer-centricity and reliability, leading to improved business performance and billing efficiency rising to 91.7% from 91.0% in the last year. Additionally, provisional billing decreased from 0.7% to 0.5%, and digital payments increased to 77% from 74% in FY23.
TP Central Odisha Distribution Limited - TPCODL
Type of entity: Subsidiary (Tata Power: 51%, GRIDCO Ltd: 49%)
| Particulars | FY24 | FY23 |
| Sales (MUs) | 8,853 | 7,639 |
| Revenue from Operations (in Rs crore) | 5,444 | 4,791 |
| PAT (in Rs crore) | 63 | 13 |
In FY24, TPCODL served a registered consumer base of 32.17 lakh across a 29,354 sq.km area in central Odisha. The AT&C Loss (excluding past arrears) improved to 21.9% from 22.7% in the previous year.
PAT increased significantly due to the impact of tariff order and higher capitalisation.
TPCODL achieved a System Average Interruption Duration Index (SAIDI) of 176 hours and a System Average Interruption Frequency Index (SAIFI) of 312.
Key achievements and highlights include:
• 1,32,472 new connections with a load of 377 MW energized.
• Booked theft load of 115 MW and recovered 42 crore.
• 1.67 lakh defective and mechanical single-phase meters replaced. This has led to an overall meter replacement of more than 10 lakh meters.
• 887 Gaon Chalo programmes and 47 Resident Welfare Associations (RWA) meets conducted to reach out to rural customers. Various Pay and Win scheme introduced to enhance digital payment. Customer Care Centre (CCC) introduced across 20 divisions.
• 43,424 smart meters installed under smart meter rollout project.
• 862 fuse call centres converted to Bidyut Seva Kendras, where consumer can lodge both no supply and commercial complaints.
• NABL accreditation for meter testing labs at Bhubaneswar and Cuttack
• 6.71 lakh customers adopted digital payment
TP Northern Odisha Distribution Limited - TPNODL
Type of entity: Subsidiary (Tata Power: 51%, GRIDCO Ltd: 49%)
| Particulars | FY24 | FY23 |
| Sales (MUs) | 6,017 | 5,415 |
| Revenue from Operations (in Rs crore) | 3,803 | 3,356 |
| PAT (in Rs crore) | 133 | 116 |
In FY24, TPNODL had a registered customer base of 19.54 lakh, spanning across an area of 27,920 sq. km. in northern parts of Odisha. The AT&C Loss (excluding past arrears) stood at 14.2% as against 19.7% in the previous year.
PAT has increased during the year mainly due to impact of tariff order and higher capitalisation of assets.
TPNODL achieved the System Average Interruption Duration Index (SAIDI) to a level of 349 hours and System Average Interruption Frequency Index (SAIFI) of 576.
Key achievements and highlights are as below:
• Achieved A+ Rating in 12th Annual Integrated Rating and Ranking of Power Distribution Utilities issued by Ministry of Power, Government of India
• Launched 139 PDS linked Anubhav Kendra - a one stop experience centre for rural consumers service delivery integrated with PDS centres (Ration Shops), across all sub- divisions
• Launched Fuse Call Complaint (FCC) mobile application for faster resolution of supply related complaints
• Remote operation of 80 Primary Substation (PSS) and unmanned 50 PSS at micro-SCADA (Supervisory Control and Data Acquisition)
• Setting up of Energy Clubs in 125 schools across the Discom
TP Southern Odisha Distribution Limited - TPSODL
Type of entity: Subsidiary (Tata Power: 51%, GRIDCO Ltd: 49%)
| Particulars | FY24 | FY23 |
| Sales (MUs) | 3,195 | 3,156 |
| Revenue from Operations (in Rs crore) | 2,096 | 2,059 |
| PAT (in Rs crore) | 37 | 33 |
In FY24, TPSODL had a registered customer base of 22.62 lakh, spanning across an area of 48,751 sq. km. in the southern part of Odisha. The AT&C Loss (excluding past arrears) stood at 25.9% as against 27.0% in the previous year.
PAT has increased mainly due to reduction in AT&C losses, favourable tariff order and higher capitalisation.
TPSODL achieved the System Average Interruption Duration
Index (SAIDI) is 119 hours and System Average Interruption
Frequency Index (SAIFI) is 174.
Key achievements and highlights are as below:
• Adopted 113 Gram Panchayats (GP) as Model GPs in its operational area.
• All women meter testing lab calibrated in accordance with National Accreditation Board for Testing and Calibration Laboratories (NABL).
• Technological intervention through AI-ML Based Remote Safety Surveillance and Drone Based Safety Observation
• Skill and safety capability building through newly established state of the art Hands on Technical Training (HOTT) Center at Ambagada, Berhampur
• TPSODL is the first utility in Odisha to implement full- fledged Area Power System Control Centers (APSCC) in every circle.
TP Western Odisha Distribution Limited - TPWODL
Type of entity: Subsidiary (Tata Power: 51%, GRIDCO Ltd: 49%)
| Particulars | FY24 | FY23 |
| Sales (MUs) | 10,644 | 10,610 |
| Revenue from Operations (Rs crore) | 7,077 | 6,254 |
| PAT (Rs crore) | 75 | 91 |
In FY24, TPWODL had a registered customer base of 20.75 lakh. It has a vast distribution area in the Western part of Odisha covering 48,373 sq. km across nine revenue districts. The AT&C Loss (excluding past arrears) stood at 16.1% as against 20.0% in the previous year.
PAT for the year has decreased mainly due to higher ECL provision reduction partly offset by reduction in AT&C losses, favourable tariff order and higher capitalisation.
System Average Interruption Duration Index (SAIDI) is measured to 309 hours whereas System Average Interruption Frequency Index (SAIFI) is 404.
Key achievements and highlights are as below:
• Achieved an A+ rating for the second consecutive time in the 12th Edition of Integrated Rating of Power Distribution Utilities
• All three Meter Testing Lab has been accreditation by National Accreditation Board for Testing and Calibration Laboratories (NABL). The lab has tested in FY24 ~ 65,000 new meters, 500 Consumer meters on request and 11,500 Nos of CT & PT so far.
• Credit rating agency ICRA ratings has upgraded TPWODL outlook from Stable to Positive.
• Additional load of 347 MVA and 93,262 new consumers added.
• Enforcement load of 132 MW was booked and recovered 35 crore
• Interactive WhatsApp Service has been launched for Duplicate bills, Register Complaints, Update Contact detail, chatting with exe etc.
• The Digital Workplace (DWS) system has been launched company-wide for a paperless DAK Management System.
Tata Power Trading Company Limited - TPTCL
Type of entity: Wholly-owned subsidiary
| Particulars | FY24 | FY23 |
| Traded (MUs) | 20,663 | 19,070 |
| Revenue from Operations (in Rs crore) | 249 | 405 |
| PAT (in Rs crore) | 67 | 21 |
PAT is higher mainly due to exceptional income received on account of delayed payment charges and loss incurred in the previous year on account of fixed price contract. During the year, TPTCL, in collaboration with Renewable arm of Tata Power, commissioned the first 200 MW Solar merchant plant.
international business
Dagachhu Hydro Power Corporation Limited - DHPC (126 MW)
Type of entity: Associate (Tata Power 26%, DGPC and Affiliates: 74%)
| Particulars | FY24 | FY23 |
| Sales (MUs) | 367 | 421 |
| Revenue from Operations (Rs crore) | 157 | 159 |
| PAT (Rs crore) | 22 | 7 |
Figures are on 100% basis. The Companys share is 26%
Adjaristsqali Netherlands B.V. (ABV)
Type of entity: Joint Venture (TPIPL: 50%, Clean Energy Invest: 50%)
ABV, through its wholly-owned subsidiary, Adjaristsqali Georgia LLC (AGL) has developed a 187 MW hydropower project (Shuakhevi and Skhalta projects) on the Adjaristsqali River and its tributaries in Georgia. This is one of the largest infrastructure investments in Georgia. Investment in ABV is shown as assets held for sale.
Itezhi tezhi Power Corporation Limited (ITPC)
Type of entity: Joint Venture (Tata Power 50%, Zesco Ltd: 50%)
ITPC has developed a 120 MW hydropower project on Kafue River in Zambia. Investment in ITPC is shown as assets held for sale.
During the year, the Board of Directors of ITPC has declared dividend and accordingly the Group has recognised 748 crore as Other Income.
digital initiatives
The Company is continuously building digital platforms and solutions across the organisation to deploy various use cases to cover different aspects of business. All of these has led to a significant increase in operational efficiency, positive consumer experience and employee productivity.
Some of the key initiatives taken up by the Company across business/functions during the year are as follows:
Initiatives to enhance customer experience:
Unified Customer Portal and Mobile App - Integrated customer portal and mobile app has been launched for all Tata Power Discom customers at Mumbai, Delhi and Odisha and also for Tata Power Rooftop customers.
• Single integrated mobile and web platform for simplified utility-customer interactions
• Enhanced customer engagement and customer experience through digital self-service capabilities
Consumption Disaggregation Analysis - New service has been launched for customers to view:
• Appliance-wise energy consumption trends with insights about appliance degradation
• Detailed comparison between appliance-wise daily energy consumption trends
• Suggested ways to reduce energy consumption and save energy spends
Image Analytics for Anomaly Detection - This is an innovative initiative towards proactive monitoring of Transmission Lines through AI/ML model using high-definition images with location coordinates to -
• avoid line tripping and power failures
• ensure quality monitoring and eliminating safety hazards
• seamless integration with GIS system for identification of asset and automation of SAP work order for actionable items, enabling preventive maintenance of these assets.
Multilingual Post Transactional Feedback - Survey questionnaire has been introduced in Hindi and Marathi languages in addition to English language, in order to reach out to a larger consumer base. This feedback provides insights to further enhance the customer services.
Self-Survey Solution for Rooftop - Integrated with SFDC and Arka Design Studio - Implementing an innovative and user-friendly Self Survey Solution has revolutionized the way customers obtain quotations for rooftop offerings. This solution empowers customers to take control of the initial survey process using their smartphones to capture photos and videos of their rooftop, along with providing basic information. Once the customer uploads the necessary visuals and information, the data is seamlessly transferred to our Design Studio. Our skilled engineering team then utilises advanced software to analyse the inputs, create a tailored design that best fits the customers needs and space, and generate an accurate quotation.
This approach significantly reduces the need for initial on-site visits by professionals, leading to a quicker turnaround time. The solution ensures a seamless, efficient, and engaging journey from inquiry to quotation, resulting in a more convenient experience for the customer. It also ensures precision, personalisation, and efficiency, aligning perfectly with the expectations of modern consumers who seek quick and reliable services.
Revolutionising the EV Charging Experience with the EZ Charge RFID Card simplifies the charging process. Users simply need to tap their EZ Charge Card on the chargers detector to initiate instant and hassle-free charging. The EZ Charge Card has offline access to EV charging points within the EZ Charge Network, enabling EV owners to charge their vehicles even when facing network limitations. It also allows multiple users to access charging facilities through their individual EZ Charge Cards. With one EZ Charge Account, users can enjoy the convenience of sharing access without the need to share app information, ensuring privacy and security. Moreover, the EZ Charge Card offers a quicker and more efficient way to complete transactions, streamlining the payment process. The EZ Charge Card is an essential and accessible tool for every EV owner, available for purchase at an affordable MRP through a convenient channel. Existing EV owners can order the EZ Charge Card via the EZ Charge App (Selfcare portal) for doorstep delivery.
Transforming Solar Monitoring and Analytics with the Rooftop NOC application update offers a significant advancement in solar plant monitoring, enhancing our commitment to delivering exceptional customer experiences. Users can now access a holistic overview of their sites through the enhanced Plant List feature, enabling real-time monitoring of crucial parameters such as ON/OFF status for Plants, Inverters, Meters, SCB, and weather stations. The interactive dashboard provides an intuitive interface for monitoring real-time parameters tailored to specific site needs, while the basic tabular view offers flexibility in data aggregation and detailed historical analysis. The dedicated Plant and Device Configurator tools simplify the onboarding process for new sites and streamline metadata collection, ensuring seamless integration and operational efficiency. With role-based management capabilities, administrators can configure user roles for enhanced security and access control. Furthermore, the integration of Solar GIS reports equips users with comprehensive insights into solar performance, empowering informed decision- making and optimisation strategies.
These initiatives underscore our commitment to empowering customers with advanced tools and insights, revolutionising solar monitoring capabilities, and driving efficiency across their solar assets, providing comprehensive insights and streamlined operations.
Initiatives to enhance operational efficiency:
• Boundary Wall Monitoring - Intruder detection system powered by video analytics provides a proactive approach to plant security, enabling early detection and response to potential threats along the boundary wall.
• Combustion Optimisation and APC Reduction Tool - In- house developed analytics system to monitor and optimise the plant parameters that affect boiler combustion and auxiliary power consumption of plant equipment.
• Generation Sales Prediction - Digital price matrix tool has been implemented to maximise the generation sales through market analysis based on block wise data and increases the realisation rate.
• Boiler Tube Leakage Detection System - In-house developed digital tool to detect anomaly at early stage and significantly reduce the risk of tube leakage.
Initiatives to enhance compliance and controls:
• RiiT (Related Party Interests Information and Transactions) tool has been implemented for compliance requirement and eliminating manual intervention
• Forex and exposure management through system
• Implementation of GST vendor management tool
Initiatives to enhance employee Productivity:
Suraksha Samvad - To improve safe working conditions and workmen safety, a mobile-enabled system has been implemented for capturing safety observations by line managers during the maintenance and project activities and further facilitating the closure process.
Initiatives to enhance employee Experience:
Employee Suite "HRONE" - The entire employee suite has been implemented on the contemporary SuccessFactors platform. This includes modules - from recruitment to onboarding, employee movements recording, leave and attendance, learning, appraisals to offboarding, etc. The benefits of the application include:
• Accessibility on any device, including mobiles and iPads, allowing for greater convenience and flexibility.
• End-to-end features from recruitment marketing to appointment letters, leave management, attendance tracking, and shift monitoring, leading to decentralisation of tasks and increased accountability and responsibility for business HR, thereby reducing turnaround time.
• Consolidation of all learning activities onto a single platform, including access to LinkedIn, Coursera, Tata Power Custom Content, and more.
• Inclusion of all employee categories appraisals in one system, facilitating a more streamlined and efficient appraisal process, even for blue-collar employees.
• Improved system experience levels for employees, managers, HR, and other stakeholders, enhancing overall user satisfaction and efficiency.
4. financial performance - standalone
The Company recorded a PAT of Rs 2,230 crore in FY24 as against Rs 3,268 crore in FY23. Both the basic and the diluted earnings per share were at 6.97 for FY24 as against 10.22 in FY23.
The analysis of major items of the Standalone Financial Statements is shown below.
Revenue
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Revenue from Operations | 20,093 | 17,728 | 2,365 | 13% |
| Regulatory Deferral Balances including Deferred Tax Recoverable/(Payable) | 204 | 1,120 | (916) | (82%) |
| Total | 20,297 | 18,848 | 1,449 | 8% |
The increase in revenue is mainly due to higher generation in Mundra offset by lower fuel cost and reduction in tariff rates in distribution business.
Other Income
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Interest Income | 140 | 141 | (1) | (1%) |
| Dividend Income | 1,609 | 3,895 | (2,286) | (59%) |
| Gain/(Loss) on | 20 | 14 | 6 | 43% |
| Investments | ||||
| Other Non-operating | 83 | 35 | 48 | 137% |
| Income | ||||
| Total | 1,852 | 4,085 | (2,233) | (55%) |
The decrease in Other Income is mainly due to lower dividend income from foreign subsidiary offset by dividend received from ITPC.
Cost of Power Purchased and Cost of Fuel
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Cost of Power Purchased | 1,308 | 1,395 | (87) | (6%) |
| Cost of Fuel | 12,285 | 12,024 | 261 | 2% |
Cost of power purchased was lower on account of decrease in power purchase price. Cost of fuel was higher mainly due to higher generation offset by lower fuel prices across plants.
Transmission Charges
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Transmission Charges | 335 | 260 | 75 | 29% |
Transmission charges are higher in Mumbai regulated business on account of Multi-year Tariff (MYT) order issued by MERC.
Employee Benefit Expenses
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Employee Benefit Expenses | 795 | 746 | 49 | 7% |
Employee benefit expenses are higher mainly due to normal increment.
Finance Costs
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Finance Costs | 2,257 | 2,227 | 30 | 1% |
Finance costs has increased mainly due to increase in interest rates and higher borrowings for capex.
Depreciation and Amortisation
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Depreciation and Amortisation | 1,188 | 1,167 | 21 | 2% |
Depreciation has increased due to higher capitalisation in Mumbai operation.
Operations and Other Expenses
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Repairs and maintenance | 492 | 492 | Nil | Nil |
| Others | 830 | 1,199 | (369) | (31%) |
| Total | 1,322 | 1,691 | (369) | (22%) |
Other expenses are lower mainly due to lower forex loss and previous year includes compensation for shortfall in shipment pertaining to Mundra plant as per the contract.
Exceptional Items
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Gain on sale of assets and Investment in subsidiary | Nil | 688 | (688) | (100%) |
| Total | Nil | 688 | (688) | (100%) |
During the previous year, the Company sold its wind assets, rooftop projects, and equity investment in Tata Power Solar Systems Ltd., Tata Power Green Energy Ltd., TP Saurya Ltd., TP Kirnali Solar Ltd., TP Solapur Solar Ltd., TP Akkalkot Renewable Ltd., TP Solapur Saurya Ltd., TP Roofurja Renewable Ltd. and Supa Windfarm Ltd to TPREL and electric vehicle (EV) charging business to Tata Power EV Charging Solution Limited (erstwhile TP Solapur Ltd) at total consideration of 1,257 crore and recognised net profit of 688 crore in the financial results.
Tax Expenses / (Credit)
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Current Tax in Respect of Earlier Year | (93) | (30) | (63) | 210% |
| Deferred Tax | 430 | 984 | (554) | (56%) |
| Deferred Tax in Respect of Earlier Year | (56) | (111) | 55 | (50%) |
| Total | 281 | 843 | (562) | (67%) |
Current Tax in Respect of Earlier Years
During the current year, the Company has received favourable order for earlier years in respect of disallowance under Section 14A and transfer pricing and, accordingly, the Company has reversed provisions created in the earlier years amounting to 93 crore.
During the previous year, the Company had received two favourable orders in respect of disallowances under Section 14A of the Income Tax Act and, accordingly, the Company had reversed provisions created in earlier years amounting to 30 crore.
Deferred Tax
During the current year, the Company has reversed deferred tax assets amounting to 618 crore on account of utilisation of unabsorbed depreciation due to higher profits. Further, the Company created deferred tax assets amounting to 220 crore on business loss which was not recognised earlier due to lack of certainty of realisation.
During the previous year, the Company had reversed the deferred tax assets amounting to 984 crore created in the earlier years on account of utilisation of unabsorbed depreciation due to higher profit.
Deferred Tax Relating to Earlier Year
The Company has reassessed the recoverability of unabsorbed depreciation and brought forward tax losses based on order received and accordingly has recognised deferred tax asset amounting to 56 crore in FY24 (111 crore in FY23).
Property, Plant and Equipment,
Capital Work-in-Progress and Other Intangible Assets
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Property, Plant and Equipment | 20,674 | 20,778 | (104) | (1%) |
| Right of Use Assets | 2,848 | 2,921 | (73) | (2%) |
| Other Intangible Assets | 20 | 22 | (2) | (9%) |
| Capital Work-in- Progress | 1,799 | 1,273 | 526 | 41% |
| Total | 25,341 | 24,994 | 347 | 1% |
The above assets have increased due to increase in capex spend in Mumbai Transmission and FGD projects in thermal plants offset by depreciation and amortisation in FY24.
Non-Current Investments
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Investment in Subsidiary, JV and Associate | 11,161 | 10,765 | 396 | 4% |
| Statutory Investments | 206 | 128 | 78 | 61% |
| Others | 1,647 | 1,172 | 475 | 41% |
| Total | 13,014 | 12,065 | 949 | 8% |
Non-current investments increased mainly due to infusion of additional investments in Odisha Discoms, acquisition of TP Bikaner III Neemrana II Transmission Ltd, aimed at enhancing the evacuation of renewable energy in India and increase in fair valuation of Tata Investment Corporation, Tata International and Tata Capital.
Current Investments
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Investments in Mutual Funds | 392 | 64 | 328 | 513% |
Current Investment is higher mainly due to higher investment in mutual funds during the year.
Trade Receivables
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Current | 1,582 | 1,904 | (322) | (17%) |
Decrease in Trade Receivables is mainly due to higher collection.
Loans
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 4 | 3 | 1 | 33% |
Increase in loans is mainly due to loans given to one of the subsidiary, TP Power Plus Ltd.
Finance Lease Receivable
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 468 | 475 | (7) | (1%) |
| Current | 60 | 50 | 10 | 20% |
| Total | 528 | 525 | 3 | 1% |
Finance Lease Receivable has increased due to capitalisation offset by recovery of lease rentals.
Other Financial Assets
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 81 | 78 | 3 | 4% |
| Current | 64 | 505 | (441) | (87%) |
| Total | 145 | 583 | (438) | (75%) |
Other Financial Assets decreased mainly due to realisation of dividend receivable from subsidiary.
Other Assets
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 2,941 | 1,848 | 1,093 | 59% |
| Current | 415 | 246 | 169 | 69% |
| Total | 3,356 | 2,094 | 1,262 | 60% |
Other Assets increased mainly due to increase in recoverable from consumers in Mumbai Regulated Business of Generation and Transmission and increase in unbilled revenue pertaining to Mundra plant.
Assets Classified as Held for Sale
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Land | 300 | 298 | 2 | 1% |
| Investments | 276 | 276 | Nil | Nil |
| Loan and other receivables (including interest accrued) | 4 | 22 | (18) | (82%) |
| Total | 580 | 596 | (16) | (3%) |
Decrease in loan and other receivables is mainly due to repayment of loan by ITPC, a JV company in Zambia.
Liability Classified as Held for Sale
(in Rs crore
| Particulars | FY24 | FY23 | Change | % Change |
| Other Liabilities | 114 | 114 | Nil | Nil |
| Total | 114 | 114 | Nil | Nil |
This liability pertains to advance received towards sale of Dehrand Land.
Regulatory Deferral Account - Asset
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Regulatory Deferral - Asset | 2,245 | 1,913 | 332 | 17% |
Regulatory Deferral Assets pertains to regulatory receivables in the Mumbai Distribution Business. The same has increased mainly due to increase in transmission charges and under-recovery of fixed costs including carrying cost on regulatory assets.
Total Equity
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Equity Share Capital | 320 | 320 | Nil | Nil |
| Other Equity | 15,468 | 13,380 | 2,088 | 16% |
| Total Equity | 15,788 | 13,700 | 2,088 | 15% |
Total Equity has increased mainly due to profits earned during the year net of dividend paid.
Borrowings
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 13,373 | 11,272 | 2,101 | 19% |
| Current | 6,153 | 10,593 | (4,440) | (42%) |
| Total | 19,526 | 21,865 | (2,339) | (11%) |
Borrowing decreased due to repayment of borrowings from higher cash flow from operations.
Lease Liability
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 2,732 | 2,736 | (4) | (0%) |
| Current | 355 | 318 | 37 | 12% |
| Total | 3,087 | 3,054 | 33 | 1% |
Lease Liability has increased mainly due to remeasurement of future lease liabilities on account of change in CERC Index pertaining to Mundra Plant.
Trade Payables
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Current | 4,081 | 1,985 | 2,096 | 106% |
Trade payable increased mainly on account of payable for fuel in Mundra and Mumbai regulated business.
Other Financial Liabilities
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 30 | 134 | (104) | (78%) |
| Current | 4,833 | 4,682 | 151 | 3% |
| Total | 4,863 | 4,816 | 47 | 1% |
Other Financial Liabilities increased mainly due to higher factoring liabilities pertaining to Mumbai Generation business and supplier credit facilities availed pertaining to fuel vendors for Mundra Plant offset by reduction in capital creditors and lower interest accrued but not due on borrowings.
Other Liabilities
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 978 | 859 | 119 | 14% |
| Current | 619 | 661 | (42) | (6%) |
| Total | 1,597 | 1,520 | 77 | 5% |
Other Liabilities increased mainly due to increase in deferred revenue liability pertaining to Mundra Plant.
Provisions
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 281 | 286 | (5) | (2%) |
| Current | 28 | 18 | 10 | 56% |
| Total | 309 | 304 | 5 | 2% |
No major movement in provisions during the year.
Tax Assets/(Liabilities)
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-Current Tax Assets | 463 | 611 | (148) | (24%) |
| Deferred Tax Liabilities | (996) | (617) | (379) | 61% |
| Current Tax Liabilities | (129) | (198) | 69 | (35%) |
| Total (Net) | (662) | (204) | (458) | 225% |
Deferred Tax Liability (Net)
During the year, the Company has reversed deferred tax assets amounting to 618 crore on account of utilisation of unabsorbed depreciation due to higher profits during the year. Further, the Company created deferred tax assets amounting to 220 crore on business loss which was not recognised earlier due to lack of certainty of realisation.
Non-Current Tax Assets and Current Tax liability
During the current year, the Company has received favourable order for earlier years in respect of disallowance under Section 14A and transfer pricing and, accordingly the Company has reversed provisions created in the earlier years amounting to 93 crore.
5. financial performance - consolidated
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Revenue from Operations* | 61,542 | 56,033 | 5,509 | 10% |
| Depreciation and Amortisation | 3,787 | 3,439 | 348 | 10% |
| Finance Costs | 4,633 | 4,372 | 261 | 6% |
| Exceptional Items | 273 | Nil | 273 | NA |
| Profit Before Taxes | 5,732 | 5,457 | 275 | 5% |
| Profit for the year | 4,280 | 3,810 | 470 | 12% |
• Includes Regulatory Income/ (Expenses)
• Revenue from operation increased primarily due to higher generation in Mundra plant as the plant operated under Ministry of Power guidelines, higher sales across the distribution business and higher execution of projects in renewable business.
• Depreciation increased primarily due to increased capitalisation.
• Finance costs were higher mainly due to higher capitalisation and increase in interest rate.
• Exceptional items in the current year includes:
- Gain on dilution of investments in Tata Projects amounting to 235 crore
- Non-Cash impairment charge of 101 crore on goodwill related to renewable business.
- Profit recognised on sale of Arutmin amounting to 140 crore (withholding tax amounting to 102 crore deducted is shown under tax expenses)
Property, Plant and Equipment,
Capital Work-in-Progress and Other Intangible Assets
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Property, plant and Equipment | 59,624 | 54,525 | 5,099 | 9% |
| Right of Use Assets | 4,369 | 3,982 | 387 | 10% |
| Other Intangible Assets | 1,459 | 1,381 | 78 | 6% |
| Capital Work-in- Progress | 11,561 | 5,376 | 6,185 | 115% |
| Total | 77,013 | 65,264 | 11,749 | 18% |
Goodwill
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Goodwill | 1,757 | 1,858 | (101) | (5%) |
Goodwill decreased on account of non-cash impairment charge related to renewable business.
Non-Current Investments
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Investments in Joint Ventures and Associates | 12,984 | 14,219 | (1,235) | (9%) |
| Statutory Investments | 206 | 128 | 78 | 61% |
| Others | 1,649 | 1,173 | 476 | 41% |
| Total | 14,839 | 15,520 | (681) | (4%) |
Decrease in Non-current investment is mainly due to sale of investment in PT Arutmin Indonesia and related infrastructure companies offset by increase in fair valuation of Tata Investment Corporation, Tata International and Tata Capital.
Current investments
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Statutory Investments | Nil | 64 | (64) | (100%) |
| Investments in Mutual Funds | 1,478 | 1,086 | 392 | 36% |
| Total | 1,478 | 1,150 | 328 | 29% |
Current Investments are higher mainly due to higher investment in mutual fund across the group companies.
Trade Receivables
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 273 | 360 | (87) | (24%) |
| Current | 7,402 | 6,952 | 450 | 6% |
| Total | 7,675 | 7,312 | 363 | 5% |
Increase in Trade Receivables was mainly due to higher receivable in TPSSL and TPTCL offset by recovery of past dues in TPREL and WREL.
Loans
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 2 | 3 | (1) | (33%) |
| Current | 11 | 12 | (1) | (8%) |
| Total | 13 | 15 | (2) | (13%) |
There is no major movement in loan during the year.
Finance Lease Receivable
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 562 | 567 | (5) | (1%) |
| Current | 66 | 55 | 11 | 20% |
| Total | 628 | 622 | 6 | 1% |
There is no major movement in the Finance Lease Receivable during the year.
Other Financial Assets
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 2,085 | 1,727 | 358 | 21% |
| Current | 471 | 688 | (217) | (32%) |
| Total | 2,556 | 2,415 | 141 | 6% |
Non-current financial assets have increased mainly due to increase in bank deposits with maturity more than 12 month in Odisha Discoms. Current Financial assets have decreased mainly due to decrease in deposit with maturity less than 12 months and decrease in fair value of derivative contracts in renewable subsidiaries.
Other Assets
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 5,174 | 2,532 | 2,642 | 104% |
| Current | 1,704 | 1,329 | 375 | 28% |
| Total | 6,878 | 3,861 | 3,017 | 78% |
Non-current assets increased mainly due to increase in recoverable from consumers in Mumbai Regulated Business of Generation and Transmission, increase in unbilled revenue pertaining to Mundra plant and capital advance and government grants receivable in renewable business. Current assets have increased mainly due to increase in balance with government authorities and contract assets in TPTCL and renewable business.
Assets/ (Liability) Classified as Held for Sale
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Assets Classified as Held for Sale | 1,201 | 3,300 | (2,099) | (64%) |
| (Less): Liability Classified as Held for Sale | (114) | (114) | Nil | Nil |
| Total (Net) | 1,087 | 3,186 | (2,099) | (66%) |
Decrease in assets classified as held for sale on account of sale of PT Arutmin Indonesia and related infrastructure companies offset by movement in foreign exchange rate.
Regulatory Deferral Account - Asset/ (Liability)
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Regulatory Deferral - Asset | 8,299 | 8,433 | (134) | (2%) |
| Less: Regulatory Deferral - Liability | (716) | (1,235) | 519 | (42%) |
| Total Regulatory Deferral - Asset (Net) | 7,583 | 7,198 | 385 | 5% |
Regulatory Deferral Assets (Net) pertains to regulatory receivables in TPDDL, Odisha Discoms and Mumbai Distribution Business. This has increased mainly due to decrease in regulatory liability in TPWODL.
Total Equity
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Equity Share Capital | 320 | 320 | Nil | Nil |
| Other Equity | 32,035 | 28,468 | 3,567 | 13% |
| Total | 32,355 | 28,788 | 3,567 | 12% |
Total equity of the Company has increased mainly due to the profit earned during the year net of dividend paid.
Borrowings
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 37,392 | 30,708 | 6,684 | 22% |
| Current | 12,088 | 18,266 | (6,178) | (34%) |
| Total | 49,480 | 48,974 | 506 | 1% |
Increase in borrowing is mainly due to funding for growth projects in renewables and T&D business.
Lease Liability
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 3,742 | 3,511 | 231 | 7% |
| Current | 467 | 438 | 29 | 7% |
| Total | 4,209 | 3,949 | 260 | 7% |
Lease Liability has increased due to remeasurement of future lease liabilities on account of change in CERC Index pertaining to Mundra Plant during the year and new lease agreement entered in renewable business.
Trade Payables
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Current | 9,321 | 7,407 | 1,914 | 26% |
Trade payable increased mainly on account of payable for fuel in Mundra and Mumbai regulated business.
Other Financial Liabilities
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 1,508 | 1,410 | 98 | 7% |
| Current | 14,796 | 13,151 | 1,645 | 13% |
| Total | 16,304 | 14,561 | 1,743 | 12% |
Other non-current financial liabilities have increased mainly due to increase in security deposits from Consumers in TPDDL and Odisha Discoms partially offset by decrease in retention money for capital supplies for FGD projects in Mundra and MPL.
Other Current Financial Liabilities have increased mainly due to higher suppliers credit facilities availed pertaining to opex creditors and for capital creditors related to renewable business.
Other Liabilities
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 11,973 | 9,848 | 2,125 | 22% |
| Current | 3,880 | 4,188 | (308) | (7%) |
| Total | 15,853 | 14,036 | 1,817 | 13% |
Other non-current liabilities have increased due to increase in Government grant towards cost of capital assets & deferred revenue on account of service line contribution in Odisha Discoms.
Other Current Liabilities has decreased mainly due to decrease in advances from customers in TPCL and TPSSL.
Provisions
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current | 1,865 | 1,420 | 445 | 31% |
| Current | 294 | 311 | (17) | (5%) |
| Total | 2,159 | 1,731 | 428 | 25% |
Non-Current Provision has increased mainly due to the increase in provision for employee benefits in Odisha Discoms.
Tax Assets/ (Liabilities)
(in Rs crore)
| Particulars | FY24 | FY23 | Change | % Change |
| Non-current Tax Assets | 586 | 739 | (153) | (21%) |
| Deferred Tax Assets | 499 | 253 | 246 | 97% |
| Current Tax Assets | 8 | 1 | 7 | 700% |
| Current Tax Liabilities | (292) | (218) | (74) | 34% |
| Deferred Tax Liabilities | (2,772) | (1,919) | (853) | 44% |
| Total (Net) | (1,971) | (1,144) | (827) | 72% |
Total tax liabilities (net) have increased mainly due to increase in deferred tax charge in TPCL, TPDDL and renewable business.
Further, the Company has received favourable order in respect of the taxes paid in earlier years.
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