According to reports, a struggling economy, rupee depreciation and adverse investment climate have forced Tata Power, India’s largest private sector power company, to slow down their expansion and acquisition plans.
“We believe that our Indian projects are not going to make any dramatic progress in the next 18 months,” S Ramakrishnan, executive director and chief financial officer, Tata Power told HT.
The company had reported a Rs. 114.7-crore loss for its first quarter on account of high foreign exchange loss and finance cost, due to a devalued rupee.
“Today we are only investing in our Mumbai distribution business. We are doing our Kalinganagar project. We are investing little bit in solar and wind. None of our major projects in India are making any progress as they are linked to issues related to coal linkage or land,” he said.
The company has also paused its hydro and wind assets acquisition plans. Ramakrishnan said the company is not in a position to keep any timeframe to close such deals. “Ideally, we like to have 1000 MW in hydro and 200 MW in wind. But, today the environment is so uncertain to keep any kind of target,” he said.