Hydropower portfolio of India has depleted: Anil Sardana, Tata Power


    The total energy production fell from 30% to 17% and is expected to drop to 15% in 2017, which according to him is a very low figure. 

    Anil Sardana, CEO Tata Power, recently in an interview to ET Now spoke about hydropower capacity in India. The CEO stated that hydropower capacity in India has been experiencing depletion. He stated that the total energy production fell from 30% to 17% and is expected to drop to 15% in 2017, which according to him is a very low figure. He also pointed out that European countries generate power using gas-based power plants, but India is not able to do that because it does not have natural gas, which would have been a good energy production alternative.

    Mr. Sardana also spoke about the Uday scheme that was designed to give a push to power distribution companies. He stated that the Uday Scheme aims at reviving the financial situation to reverse the loss trend. Uday carries out financial engineering for the discoms, but they also have to carry out their part. Discipline and commercial management will help them prevent the accumulation of losses in the future.

    In regards to stuck power projects, Sardana stated that in recent times, no such developments took place. Nonetheless, it is hard to run 30% PLF and still realize sustainable profits. Any amount earned at such a low PLF would only be enough to service debt. The CEO stated that Tata Power’s strategy involves identifying four verticals and identifying more opportunities. Sardana added that the company will take any opportunity, where clearances are in place. The company will also try to mitigate risk to maintain returns above the firm’s expectations.

    Sardana stated that the company’s team in India tackles stranded project proposals in the country and it is often able to meet the return thresholds without facing many challenges. However, there has to be liquidation of few condition precedents before deal is signed. He also pointed out that some deals take place on an international scale and thus often move faster. Valuation is also not an issue, but stakeholders are often problematic.

    Stock view:

    Tata Power Company Ltd ended at Rs. 61.3, up by Rs. 0.35 or 0.57% from its previous closing of Rs. 60.95 on the BSE.

    The scrip opened at Rs. 60.9 and touched a high and low of Rs. 62.35 and Rs. 60.35 respectively. A total of 2894685(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 16484.72 crore.

    The BSE group ‘A’ stock of face value Rs. 1 touched a 52 week high of Rs. 82.15 on 15-Apr-2015 and a 52 week low of Rs. 55 on 12-Feb-2016. Last one week high and low of the scrip stood at Rs. 63.5 and Rs. 59.1 respectively.

    The promoters holding in the company stood at 33.02 % while Institutions and Non-Institutions held 50.96 % and 16.01 % respectively.

    The stock traded above its 200 DMA. 

    Source : indiainfo