Tata Power Renewable Energy Raises $63 Million To Retire Debt

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

The renewable energy arm of one of India’s leading private sector power generators may be getting ready to chart an ambitious plan to expand its footprint into the country’s renewable energy sector.

Tata Power Renewable Energy Limited, a fully-owned subsidiary of Tata Power Limited, recently raised Rs 425 crore (US$63 million) through issuing non-convertible debentures (NCDs), which will be used for retiring debt acquired at higher rates.

This entire process of raising funds through NCDs is expected to be a very efficient method of retiring debt. Investors of NCDs will be paid interest linked to the base rate of State Bank of India which is expected to drop over the next few quarters. The Reserve Bank of India has reduced interest rates sharply over the last few quarters and is expected to do the same in the near future. The company would very well have raised debt before the recent rate cuts.

Tata Power Renewable Energy was recently launched as a separate company out of Tata Power, which transferred control of renewable energy assets to its new subsidiary. Tata Power Renewable Energy Limited controls operational capacity of 720 MW and under construction capacity of 250 MW. The new company may also look for equity investments and scout for candidates for acquisition.

Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Latest CleanTechnica TV Video

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it!! So, we've decided to completely nix paywalls here at CleanTechnica. But...
Like other media companies, we need reader support! If you support us, please chip in a bit monthly to help our team write, edit, and publish 15 cleantech stories a day!
Thank you!

CleanTechnica uses affiliate links. See our policy here.


An avid follower of latest developments in the Indian renewable energy sector.

Saurabh has 1037 posts and counting. See all posts by Saurabh