Major Players

Performance highlights of the past 12 months

Fiscal year 2015-16 was marked by a number of developments in the power sector. There was continued policy thrust on renewable energy. While thermal continued to dominate the energy mix, not much progress was made in the hydro and nuclear segments. The overall plant load factors (PLFs) continued to decline, a marginal increase was observed in the PLF of coal-based private sector plants.

Indian Infrastructure takes a look at the major power sector players and their financial performance in the previous fiscal year…

NTPC Limited

NTPC Limited’s total installed capacity (May 4, 2016) comprised 47,178 MW, including 6,966 MW of thermal capacity owned by NTPC’s joint ventures (JVs) and subsidiaries. Of NTPC’s total installed capacity of 40,212 MW (excluding JVs and subsidiaries), around 87.25 per cent is coal based, 9.99 per cent is gas/liquid based, 1.99 per cent is large hydro and the remaining 0.77 per cent is renewable energy capacity.

During 2015-16, the company recorded annual generation of 239.48 billion units (BUs) from thermal power plants (TPPs) directly owned by the company. The total power generation in 2015-16 marked a year-on-year increase of 0.3 per cent from 241.26 BUs recorded in 2014-15. The PLF at NTPC’s coal-based power plants recorded a decline of 1.56 percentage points to reach 78.63 per cent in 2015-16, against the 80.19 per cent recorded in 2014-15.

In February 2016, the central government raised about Rs 50.3 billion from the sale of a 5 per cent stake in NTPC. About 412 million shares at a floor price of Rs 122 per share were put on offer. While about 330 million shares earmarked for institutional investors were oversubscribed by 1.8 times, the 82 million shares for retail investors registered a subscription of 44.11 per cent.

NTPC commissioned various units during the previous fiscal year. These are a 500 MW unit at the 4,760 MW Vindhyachal coal-based TPP in Madhya Pradesh (August 2015), the first 250 MW unit at the Bongaigaon coal-based TPP in Kokrajhar, Assam (June 2015) and the fourth 200 MW unit of the Koldam hydroelectric project (HEP) in Himachal Pradesh (June 2015). With the commissioning of the fourth unit of the Koldam HEP, NTPC fully commissioned its maiden hydropower project.

During the year, the company put on offer several bond issues. In February 2016, NTPC raised $500 million through the sale of dollar-denominated bonds. During the same month, it also raised Rs 6.55 billion through private placement of secured non-convertible debentures carrying a coupon rate of 8.33 per cent with a door-to-door maturity of five years. Further, it raised Rs 5 billion (December 2015) and Rs 30 million (August 2015) through the issue of secured non-convertible debentures on private placement basis and tax-free bonds on private placement basis respectively. In addition, NTPC’s public issue of tax-free bonds in September 2015 was oversubscribed by 11.04 times of the base issue size of Rs 4 billion and by 6.31 times of the overall issue size of Rs 7 billion.

In December 2015, NTPC was accorded approval by the Ministry of Environment, Forest and Climate Change (MoEFCC) for the expansion of the 2,600 MW Ramagundam coal-based TPP at Karimnagar, Telangana.

During the period April-December 2015, the company received domestic coal supplies of 112.72 million tonnes (mt) as against the 109.9 mt received during the corresponding period in the previous year. During the same period the company’s coal imports decreased by 27.33 per cent to 8.35 mt from 11.49 mt in the previous year.  Moreover, in September 2015, the Ministry of Coal (MoC) allotted the Mandakini B coal block in Odisha to NTPC for its upcoming 4,000 MW coal-based power plant at Ramagundam in Telangana.

In July 2015, the company also signed a memorandum of understanding (MoU) with the Jharkhand government for expansion of the Patratu coal-based power plant. NTPC will undertake the expansion in two phases of 2,400 MW and 1,600 MW respectively and the project is expected to be completed by 2024-25.

There was also significant activity in the re-newable energy segment, particularly solar.  In May 2015, NTPC’s board accorded approval for setting up of the first phase (250 MW) of the Anantapur ultra mega solar power project (1,000 MW) in Andhra Pradesh.  Engineering, procurement and construction (EPC) contracts of 50 MW each aggregating Rs 17.79 billion were also awarded for the development of the approved capacity – 100 MW was allocated to Tata Power Solar Systems Limited, and 50 MW each was allotted to Lanco Solar Energy Private Limited, Bharat Heavy Electricals Limited (BHEL) and Sterling and Wilson Limited. Moreover, during 2015-16, NTPC bid out projects aggregating 3,000 MW under the Jawaharlal Nehru National Solar Mission Phase II Batch II Tranche I.

For the period April-December 2015, NTPC’s total income stood at Rs 523.95 billion, a decrease of 2.84 per cent over Rs 539.29 billion recorded in the corresponding period of the previous year. During April-December 2015, profit after tax recorded an increase of 2.44 per cent to Rs 75.26 billion as against Rs 73.47 billion in the corresponding period of the previous year.

NHPC

State-owned NHPC Limited is the largest public sector hydropower generation company in the country, with an installed base of 6,507 MW as of January 2016, across 20 hydropower stations (including the capacity owned by its subsidiary NHDC Limited). Of this, around 5,041 MW capacity is installed at conventional hydroelectric plants (above 25 MW). NHPC’s installed capacity accounts for 15 per cent of the country’s total hydro capacity.

In April 2016, NHPC commissioned the second 40 MW unit of the 160 MW Teesta Low Dam HEP Stage IV project at Darjeeling in West Ben-gal. The first 40 MW unit of the project was commissioned in February 2016. In addition, NHPC has resumed operations of the 520 MW Parbati III HEP at Kullu in Himachal Pradesh and the third 11 MW unit of the 44 MW Chutak HEP in Jammu & Kashmir. These units had been shut down for repair and maintenance works.

In March 2016, the MoEFCC accorded in-principle approval for NHPC’s 624 MW Kiru HEP proposed on the Chenab river at Kishtwar in Jammu & Kashmir. The project will be developed by Chenab Valley Power Projects Private Limited, a JV between NHPC Limited, the Jammu & Kashmir Power Development Department and PTC India Limited, with a total investment of Rs 46.41 billion.

NHPC currently has about 3,340 MW of hydro capacity under construction along with the 1,000 MW Pakal Dul HEP project in Jammu & Kashmir (in a JV with Jammu & Kashmir State Development Corporation Limited and PTC India Limited). Additional projects aggregating a capacity of about 8,985 MW (including JV and subsidiary projects) are awaiting clearances. In addition, three projects with an aggregate capacity of 1,130 MW are at the supply and installation stage.

In line with its diversification plans, the company awarded an EPC contract of Rs 3 billion to Rays Power Experts Private Limited in October 2015, for setting up a 50 MW solar power plant at Sattur in Tamil Nadu.

In April 2016, the government disinvested a 11.36 per cent stake in NHPC. This involved the sale of over 1,257.6 million shares at a floor price of Rs 21.75 per share, and fetched about Rs 27 billion to the exchequer.

In July 2015, NHPC raised Rs 14.75 billion through private placement of NHPC “T” series bonds. The bond issue was fully subscribed and carried a coupon rate of 8.5 per cent.

For the nine months ended December 31, 2015, NHPC posted a net profit of Rs 23.36 billion, an increase of 57.8 per cent compared to the Rs 14.8 billion profit for the same period in fiscal year 2014-15.

Power Grid Corporation of India Limited

India’s largest transmission utility, Power Grid Corporation of India Limited (Powergrid) owns and operates about 1,29,035 ckt. km of transmission lines, 207 substations and 2,54,989 MVA of transformation capacity (March 2016).

During 2015-16, Powergrid added a total line length of 14,026 ckt. km, 43 per cent (6,009 ckt. km) of which was at the 400 kV level, 31 per cent (4,324 ckt. km) at the 765 kV level, and 25 per cent (3,506 ckt. km) at the 800 kV level. At lower voltages of 220 kV, the line length added was only 187 ckt. km.

The key projects commissioned during the year were the 400 kV double-circuit (D/C) Khammam-Nagarjunasagar transmission line between Telangana and Andhra Pradesh, the 400 kV D/C line between Suryamaninagar in western Tripura and Comilla in eastern Bangladesh, and the 800 kV high voltage direct current (HVDC) line between Assam and Agra. This link is the country’s first 800 kV HVDC line as well as the longest transmission line in the country.

During 2015-16, Powergrid’s board gave investment approvals for various schemes. Key among them are the Green Energy Corridors: Inter-State Transmission Scheme (ISTS) Part A (Rs 14.79 billion), Green Energy Corridors: ISTS Part B (Rs 37.06 billion) the construction of 400/220 kV substations in Delhi (Rs 7.8 billion), the construction of a transmission system associated with the Anantapur Ultra Mega Solar Park Part A (Phase 1) in Andhra Pradesh (Rs 3.13 billion), the Southern Region System Strengthening Scheme XXIV (Rs 14.55 billion), the Common Transmission System for Phase II Generation Projects in Odisha (Rs 8.44 billion), the Transmission System for Ultra Mega Solar Power Park Phase I at Tumkur in Karnataka (Rs 8.1 billion), and the Associated Transmission System for the Nabinagar II TPS (Rs 7.9 billion). In addition, Powergrid also approved an investment of Rs 8.09 billion for strengthening the transmission system for the transfer of power from the Mangdechhu HEP in Bhutan to India.

Further, the company emerged as the successful bidder for the Vemagiri II power transmission project in Andhra Pradesh in October 2015. Powergrid had submitted a levellised tariff bid of Rs 3.59 billion per annum.

The central government also selected Powergrid for developing power transmission lines connecting solar parks and ISTSs. In December 2015, the Asian Development Bank extended a $1 billion loan ($500 million as government-backed loan and $500 million as non-sovereign lending) to the corporation for expansion of transmission networks for renewable energy projects as well as for grid augmentation.

In May 2015, Powergrid raised Rs 29.28 billion through the issue of 15-year bonds at a coupon rate of 8.4 per cent. The bonds entail stripped payment ranging from the end of the fourth year till the 15th year.

The utility reported a total income of Rs 150.42 billion for the nine-month period ended December 2015, a 20.58 per cent increase over the Rs 124.74 billion recorded for the same period in 2014. Net profit increased 24.17 per cent to Rs 44.28 billion from Rs 35.66 billion during the same period.

Bharat Heavy Electricals Limited

BHEL is the largest main plant equipment supplier in the country, accounting for a market share of 74 per cent. During 2015-16, the company commissioned or synchronised generation equipment aggregating 15,059 MW of capacity across utilities, the industrial sector and overseas projects. With this, the worldwide installed base of power generating equipment supplied by the company exceeded 170 GW. BHEL secured orders worth Rs 437.27 billion from domestic and international markets during 2015-16, an increase of 42 per cent over the previous year. Orders from the power sector stood at Rs 385.29 billion, an increase of 55 per cent over the previous year. As of March 2016, the total order book stood at over Rs 1,100 billion.

The company bagged most of the equipment orders placed in the past year. In March 2016, BHEL received an order of Rs 56 billion from Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) for the supply of main plant equipment for the 2×800 MW Uppur supercritical TPP. Earlier, in February 2016, BHEL received another Rs 27.59 billion main plant package order from TANGEDCO for the 800 MW North Chennai supercritical thermal power station (TPS) Stage III. In the same month, BHEL also received a Rs 35 billion order from NTPC Limited for the supply of two 800 MW steam generators (boilers) for the Telangana superthermal power project (STPP).

In November 2015, BHEL had secured two orders from Andhra Pradesh Power Generation Corporation Limited (APGENCO), cumulatively valued at Rs 46.14 billion, for setting up two supercritical units of 800 MW each at the Dr. Narla Tata Rao TPS Stage V and the Sri Damodaram Sanjeevaiah TPS Stage II. Other significant orders received during the year were for the 5×800 MW Yadadri TPS from Telangana State Power Generation Corporation Limited (TSGENCO) and for the 1×525 MW Tuticorin TPP from SPIC Electric Power Corporation Private Limited.

Some of the key projects commissioned by BHEL in 2015-16 are the 700 MW unit at the Bellary TPP, the 660 MW unit of the 1,980 MW Prayagraj STPP, the second 800 MW boiler of the 1,600 MW Sri Damodaram Sanjeevaiah TPP, the second 250 MW unit of the Neyveli Lignite Corporation’s TPS II (expansion), the first 500 MW unit of the 1,000 MW Chandrapur STPP Stage 3, the second 500 MW unit of the Tuticorin TPS, the second 250 MW unit of the 500 MW Sikka TPP, the 500 MW Unit 1 of the Sagardighi TPP Phase II, the 600 MW Kakatiya TPP Stage II, the 101 MW Monarchak gas-based combined cycle TPP, the first 270 MW unit of the 540 MW Goindwal Sahib TPP, the 600 MW unit of the 1,200 MW Singareni TPP, and Maharashtra State Power Generation Company Limited’s fifth 500 MW unit of the 3,340 MW Chandrapur STPP.

Various units of NTPC’s projects commissioned by BHEL during 2014-15 include the fourth 200 MW unit of the 800 MW Koldam HEP in Himachal Pradesh, the first 250 MW unit of the 750 MW Bongaigaon TPP and a 500 MW unit of the 4,760 MW Vindhyachal TPP.

In April 2016, BHEL bagged an EPC order of Rs 2.82 bilion through domestic competitive bidding for setting up a 50 MW solar photovoltaic (PV) plant at Mandsaur in Madhya Pradesh from NTPC. Earlier in the year, BHEL had bagged another EPC order from NTPC for setting up a 50 MW solar PV plant at Anantapur in Andhra Pradesh. The project is currently under execution.

On the international front, BHEL signed MoUs with three Kazakhstan-based companies in July 2015. These comprise an MoU with the national power utility of Kazakhstan JSC Samruk Energy for developing projects of mutual interest, with the Kazakhstan Utility System for co-operation in designing and constructing power plants and combined heat and power plants, and with the National Export and Investment Agency of Kazakhstan for cooperation in developing projects in Kazakhstan. In addition, BHEL also commissioned the 500 MW oil-based Kosti TPP in Sudan, Africa.

BHEL recorded a total income of Rs 156.25 billion during April-December 2015, marking a decline of 10.7 per cent over the Rs 174.97 billion registered during the same period in the previous year, while net losses stood at Rs 12.73 billion, as compared to net profits of Rs 5.31 billion over the same period.

Power Finance Corporation

The Power Finance Corporation (PFC) is one of the largest lenders to the country’s power sector. As of December 2015, PFC’s loan assets stood at Rs 2,289.5 billion, while its cumulative sanctions and disbursements (excluding under the Restructured Accelerated Power Development and Reforms Programme [R-APDRP]) stood at Rs 623.37 billion and Rs 284.82 billion respectively. This is 3.44 per cent higher than the sanctions of Rs 602.61 billion and 6.11 per cent higher than the disbursements of Rs 268.4 billion for the same period during 2014-15.

Segment-wise, the total sanctions for April-December 2015 comprised Rs 458.29 billion for generation, Rs 23.03 billion for transmission, Rs 24.56 billion for distribution and Rs 117.49 billion for other activities like transitional finance, studies, short-term loans, etc. During this period, PFC disbursed Rs 600 million under Part A of the R-APDRP and Rs 3,400 million under Part B.

During April-December 2015, the key loans sanctioned by PFC were a Rs 128.12 billion loan for Jammu & Kashmir Power Development Cor-poration Limited’s 1,856 MW Sawalkote HEP, a Rs 76.69 billion loan for TANGEDCO’s 2×660 MW Ennore supercritical TPP and a Rs 58.32 billion loan for TSGENCO’s Manugaru TPS. In the renewable segment it provided assistance to the tune of Rs 5.54 billion to Mytrah Vayu (Som) Private Limited for development of wind projects in Rajasthan and Madhya Pradesh.

In August 2015, the Department of Disinvestment undertook the sale of a 5 per cent stake in PFC through the offer for sale route. Following the sale, the government’s share in the company reduced from 72.8 per cent to 67.8 per cent. Meanwhile, PFC raised Rs 3 billion through tax-free bonds on a private placement basis in July 2015 and Rs 30 billion through the issue of short-tenor bonds in May 2015.

From April to December 2015, PFC recorded a total income of Rs 207.68 billion, marking an increase of 12.43 per cent over the Rs 184.72 billion recorded during the same period in the previous year. Net profit increased 10.32 per cent to Rs 48.53 billion from Rs 43.99 billion during the same period.

Rural Electrification Corporation

The Rural Electrification Corporation (REC) finances and promotes rural electrification projects besides providing assistance for generation, transmission and distribution (T&D) projects.

REC sanctioned loans of Rs 492.62 billion during the April-December 2015 period, about 4.17 per cent higher than the loans of Rs 472.91 billion sanctioned during the corresponding period in 2014-15. Of this, the maximum share (50 per cent) went to the generation segment, followed by the T&D segment (including the Rajiv Gandhi Grameen Vidyutikaran Yojana) (48 per cent) and the remaining 2 per cent as short-term loans.

REC disbursed loans worth Rs 340.31 billion during April-December 2015, which was 20.9 per cent higher than the Rs 281.51 billion disbursed in the same period in 2014-15. During the nine months ended December 2015, REC raised about Rs 235.93 billion through a mix of external commercial borrowings, bonds and other sources at an annualised cost of 7.02 per cent.

In October 2015, REC initiated the bidding process for two transmission projects – the 1,111 km long Vemagiri II project in Andhra Pradesh and the 550 km Bhutan interlink project in West Bengal valued at Rs 70.32 billion and Rs 22.4 billion respectively.

In September 2015, REC signed two MoUs for extending loans worth Rs 90 billion to utilities in Andhra Pradesh – an MoU with APGENCO for extending Rs 30 billion for setting up a 500 MW solar power project in Anantapur and an MoU for Rs 60 billion to Transmission Corporation of Andhra Pradesh Limited for transmission and system improvement projects. Further, in August 2015, REC approved the incorporation of a special purpose vehicle (SPV) for the System Strengthening Scheme in the Northern Region XXXVI along with setting up of line-in line-out of one circuit of the 400 kV D/C Sikar-Neemrana line at Babai (Rajasthan Rajya Vidyut Prasaran Nigam Limited). In June 2015, REC invited financial bids for the Maheshwaram 765/400 kV pooling substation at Hyderabad in Telangana.

In August 2015, the corporation disbursed a Rs 160.7 billion loan to TSGENCO for construction of the 4,000 MW Yadadri TPP which is the highest ever amount extended by REC in a single instalment.

As per stand-alone unaudited results, REC’s total income for the nine months ended December 31, 2015 was Rs 175.74 billion, 17 per cent higher than the Rs 150.17 billion reported for the same period in 2014-15. The net profit reported was Rs 44.67 billion in the nine months ended December 31, 2015, about 7.3 per cent higher than the Rs 41.64 billion reported for the same period in the previous year.

PTC India

PTC India Limited, the largest trading company in terms of market share, traded around 37 BUs of electricity in 2014-15, registering a year-on-year increase of 6 per cent. As per the Central Electricity Regulatory Commission’s (CERC) latest market monitoring report, in February 2016, the company’s share in the total volume of power traded by trading licensees stood at 27.22 per cent.

Cross-border transactions with neighbouring countires also remain an important part of the company’s portfolio. In 2014-15, trading volumes with Bhutan, Nepal and Bangladesh stood at 4,966 million units (MUs), 155 MUs and 1,624 MUs respectively.

In December 2015, PTC won West Bengal State Electricity Distribution Company Limited’s reverse auction for the supply of 150-200 MW of power on round-the-clock basis from the Jaypee Nigrie superthermal power project, Madhya Pradesh, from January to June 2016.

In November 2015, PTC India Financial Services (PFS), a subsidiary of PTC, signed an MoU with India Infrastructure Finance Company Limited (IIFCL) for financing infrastructure projects in the country.

During the year, various developments took place in the renewable energy segment. In October 2015, PTC signed an MoU with the Solar Energy Corporation of India for trading 3,000 MW of solar power on a long-term basis, for a full term of 25 years.  In June 2015, PFS signed a contract with the Netherlands Development Finance Company for a $25 million credit line for the former’s renewable energy projects in India. Recently, PTC subsidiary PTC Energy Limited commissioned two projects in the wind energy segment – a 20 MW project at Nipaniya, Mandsaur district, Madhya Pradesh (April 2016), and a 30 MW project at Jarora, also in Madhya Pradesh (March 2016).

In July 2015, PFS divested its entire stake in Ind-Barath Energy (Utkal) Limited for Rs 3.12 billion. The latter is setting up a 700 MW coal-based power project in Odisha and PFS had invested a sum of Rs 1.05 billion in the same.

From April to December 2015, PTC recorded a total income of Rs 97.55 billion, marking a decrease of 9.04 per cent over Rs 107.25 billion recorded during the same period in the previous year. Meanwhile, the company’s net profit registered an increase of 31.97 per cent and was recorded at Rs 1.94 billion during April-December 2015 as against Rs 1.47 billion during the same period in 2014-15.

Reliance Power Limited

Reliance Power Limited (RPower) owns an installed capacity of 5,945 MW across five operational projects as of April 2016. Of this, 5,760 MW is coal based, 140 MW is solar based and 45 MW is wind based.

In April 2015, Jharkhand Integrated Power Limited (JIPL), a wholly owned subsidiary of RPower, terminated the power purchase agreement (PPA) of its 3,960 MW Tilaiya ultra mega power project (UMPP) in Jharkhand owing to delays in the allotment of land. The Tilaiya UMPP was awarded to RPower in February 2009 under tariff-based competitive bidding conducted by PFC. As a consequence of the PPA termination, it was announced in November 2015 that the central government would invite fresh bids for the UMPP in January 2016. Of the 18 buyers who had signed PPAs to procure power from RPower, 10 have agreed to terminate agreements with the company. The auction for the UMPP was cancelled following a bleak response from private players. Following this, in January 2016, the Jharkhand government decided to take over JIPL from RPower.

In May 2015, the MoC cancelled the Chhatrasal coal block allocation to RPower for the 3,960 MW Sasan UMPP in Madhya Pradesh, which was commissioned in March 2015. The other two coal blocks for the project are Moher and Moher Amrohi Extension with aggregate reserves of 20 mt of coal. In June 2015, the MoC directed Sasan Power Limited (SPL), RPower’s subsidiary, to limit its annual coal production to 16 million tonnes per annum (mtpa). However, in March 2016, the MoC accorded permission to SPL to augment coal production to 17.2 mtpa during 2015-16.

In September 2015, RPower announced its plan to sell three coal mines in Indonesia operated by its subsidiary, Reliance Coal Resources Private Limited. In a separate development, the company signed an MoU with the Bangladesh government to set up a 3,000 MW gas-based project in Bangladesh. For this purpose, RPower plans to relocate the equipment contracted for its proposed 2,400 MW Samalkot gas-based combined cycle plant in Andhra Pradesh for the Bangladesh plant.

In January 2016, RPower decided to seek permission from the Andhra Pradesh government to exit the 4,000 MW Krishnapatnam UMPP due to escalation in the cost of Indonesian coal. RPower had secured the imported coal-based UMPP at Krishnapatnam in 2007.

As per unaudited consolidated results, RPower’s total income of Rs 80.54 billion in the nine months ended December 2015 was 53 per cent higher than the Rs 52.66 billion reported for the corresponding period in 2013-14. The net profit of Rs 7.52 billion was 38.6 per cent higher than the Rs 7.52 billion profit in 2014-15.

Tata Power Company

As of March 2016, the Tata Power Company (TPC) had an installed generation capacity of 9,156 MW, of which 7,810 MW comprises thermal, 693 MW hydro and 653 MW renewables (593 MW wind and 60 MW solar).

A major development for the company was the Appellate Tribunal for Electricity’s (APTEL) landmark order in April 2016 regarding compensatory tariff being sought by TPC. APTEL has referred the case back to the CERC to determine the extent of impact of force majeure pertaining to TPC’s 4,000 MW Mundra UMPP, owing to Indonesia’s regulation on the benchmark export price of coal. Under this order, the tribunal has directed the CERC to grant relief to TPC as per its PPA.

In January 2016, in a significant move, the company terminated its share purchase agreement (SPA) with Ideal Energy Projects Limited for the acquisition of 100 per cent stake in the latter’s 270 MW coal-based project in Maharashtra due to non-fulfilment of precedent conditions.

In December 2015, the company refinanced outstanding rupee loans of Rs 38.64 billion for its 4,000 MW Mundra UMPP in Gujarat. The refinancing is likely to yield savings of Rs 770 million a year in interest cost. The refinancing exercise was undertaken by a consortium banks led by the State Bank of India.

In May 2015, the MoEFCC also accorded clearance to TPC for expansion of coal handling capacity and other allied activities at its 1,580 MW Trombay coal-based plant in Mumbai, Maharashtra. The company also received approval from the Maharashtra Pollution Control Board to undertake conversion of a 500 MW unit at the plant  from oil-fuelled to coal-fuelled at an investment of Rs 11.74 billion.

On the renewable energy front, in April 2016, the company’s subsidiary, Tata Power Renewable Energy Limited (TPREL), commissioned the 44 MW Lahori wind farm project in Madhya Pradesh. Further, in March 2016, TPREL signed a SPA with Indo Rama Renewables Limited to acquire the latter’s 30 MW wind farm at Sangli in Maharashtra.

TPC reported a total consolidated income of Rs 281.05 billion for the nine-month period ended December 2015, an 8.85 per cent increase over the Rs 258.2 billion recorded for the corresponding period in 2014. Net profit increased to Rs 6.1 billion from Rs 2 billion over the same period.

Adani Power Limited

Adani Power Limited (APL) is the largest private power producer in India with an installed capacity of 10,480 MW, including the 1,200 MW Udupi TPP acquired from Lanco Infratech in April 2015. The company is targeting a capacity of 20,000 MW by 2020.

In February 2016, APL’s wholly owned subsidiary Udupi Power Corporation Limited signed an MoU with the Karnataka government for setting up a 1,600 MW supercritical TPP entailing an investment of Rs 114 billion. This is part of the company’s plans to undertake investments to the tune of Rs 184 billion in Karnataka.

In October 2015, APL signed an MoU with the Welspun Group to acquire the latter’s two ready-to-build coal-based TPPs at an investment of about Rs 4 billion. The two plants are located in Uttar Pradesh and Madhya Pradesh respectively and aggregate a proposed capacity of 4,000 MW. In the same month, Northern Central Railway signed a PPA with APL for procurement of 50 MW power capacity from the 4,620 MW Mundra TPP in Gujarat at a tariff of Rs 3.69 per unit for a three-year period.

During the past year, APL made significant investments in the solar energy segment to meet its long-term goal of setting up 10,000 MW of solar capacity across the country by 2022. In December 2015, the company secured solar power projects of 50 MW capacity in the tenders launched by NTPC. In August 2015, Adani Green Energy Limited secured a 50 MW solar PV project through competitive bidding in Uttar Pradesh.  In June 2015, the company signed a PPA with the Tamil Nadu government for setting up a 200 MW solar PV plant at Ramanathapuram at an investment of Rs 14 billion.

The company has also decided to set up another 700 MW solar power plant in Tamil Nadu entailing an investment of Rs 50 billion. In May 2015, APL announced its plan to set up a 1,000 MW solar power park at Ramanathapuram in Tamil Nadu entailing an investment of around Rs 70 billion.

In June 2015, APL won three transmission projects worth around Rs 36 billion in bidding conducted by PFC. These projects are the Rs 8.23 billion Chhattisgarh (A) transmission project, the Rs 19.76 billion Chhattisgarh (B) transmission project and the Rs 8.63 billion Sipat transmission project.

In addition, Adani Transmission Limited’s board recently accorded in-principle approval to raise Rs 50 billion through the issue of debentures or other permissible debt securities denominated in rupees or any foreign currency. The company will utilise the proceeds to refinance its existing debt and finance other working capital requirements. It will also possibly raise Rs 30 billion via masala bonds.

APL recorded a total income of Rs 252.31 billion for the year 2015-16, a 29 per cent increase over the Rs 195.45 billion recorded during 2014-15. It registered a net profit of Rs 4.88 billion for the year, compared to a loss of Rs 8.16 billion during the previous year.

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