'Tata Power exploring global avenues to mitigate risks'
Facing multiple constraints on the home turf, Tata Power is scouting for opportunities in international markets to maximise returns and minimise risks, the company's Chairman Ratan Tata has said.business Updated: Jul 29, 2012 11:44 IST
Facing multiple constraints on the home turf, Tata Power is scouting for opportunities in international markets to maximise returns and minimise risks, the company's Chairman Ratan Tata has said.
In spite of robust growth in the domestic power demand, he said multiple constraints across the entire value chain have made growth in the country very challenging.
"Thus, your company has decided to venture in international markets that offer a greater potential for growth with the strategic intent of maximising returns and minimising risks," Tata said in the company's 2011-12 annual report.
Several issues, ranging from acute coal shortages to environmental hurdles and poor financial health of discoms, are hurting the country's power sector, which has a generation capacity of over 2 lakh MW.
Tata pointed out that the company is actively pursuing business opportunities in other countries and hopes to increase its global footprint in the coming years.
Apart from Tata Power, he chairs boards of many other companies of the Tata conglomerate as well as the main promoter firm Tata Sons Ltd.
Later this year, Tata would be succeeded by Cyrus Mistry, the Deputy Chairman of Tata Sons Ltd.
The annual report stated that certain international opportunities are promising, as returns are predictable due to availability of timely clearances and lower risks.
Tata Power is primarily looking for opportunities in capacity addition across various geographies and distribution opportunities in certain areas, it added.