Image Credit: Dalal Street Investment Journal
The solar energy arm of the Tata Group conglomerate, Tata Power Solar, has been awarded an EPC(engineering, procurement & construction) contract by NTPC for a solar project of 210 megawatts. The solar energy project is worth Rs 686 crore and November 2022 has been set as the deadline for completion of work.
Tata Power Solar has worked with the NTPC, formally known as National Thermal Power Corporation Limited, earlier as well. In fact, at the end of the financial year 2020-21, Tata’s order book capacity consisted of 1,110 MW from NTPC out of a total order book of 2,824 MW.
After getting this new contract, Tata Power Solar’s order pipeline for this financial year has expanded to 2,800 MW and the order value is estimated to be around Rs 13,000 crore. The company’s EBITDA(earnings before interest, taxes, depreciation and amortization) has more than doubled in a year to reach Rs 185 crore by March 2021.
“Tata Power Solar is the leader in producing solar energy across the country and this further validates Tata Power Solar’s excellent execution skills in solar projects,” said Praveer Sinha, chief executive officer at Tata Power.
Tata Power Solar has been benefiting from favorable government policies to encourage the growth of renewable energy in the country. Market analysts predict that the EBITDA from the solar EPC segment will grow by a 16% compounded annual growth rate between the financial year 2021 and 2023, reaching up to Rs 440 crore. In view of this growth, the company has also expanded its cell manufacturing capacity 700 MW to 1,100 MW.