Tata Power, which is planning to launch its renewable energy InvIT in FY21, will also explore merger and acquisition (M&A) opportunities to strengthen its position in this space.
The company's total renewable energy portfolio stands at 4,152 MW, including 1,145 MW of solar assets under construction and another 370 MW won but awaiting letter of award (LoA).
The operational wind energy capacity is 932 MW. The company is also hoping to increase its total renewable energy portfolio to 15,000 MW by FY25.
The private sector power producer hopes to achieve the target through organic and inorganic expansion.
For organic growth, the company is eyeing the demand pipeline and expected capacity addition through bids from central agencies like Solar Energy Corporation of India (SECI) and NTPC and select state bids which have good payment track record.
For Tata Power, the restructuring of the renewable business into an InvIT is part of the divestment process to bring its debt to Rs 25,000 crore by end FY21 from Rs 43,578 crore as of 31 March 2020.
The company has already embarked on the plans to clean its balance sheet by undertaking various debt reduction measures, including selling non-core assets.
The company has already sold its stake in Cennergi Wind as well as ships owned by its Singapore subsidiary to raise around Rs 2,400 crore.
