Nuclear deal will provide biz opportunities: Mr Tata

Mumbai: The civilian nuclear deal will provide a great opportunity for Tata Power and Tata Consultant Engineers, said Mr Ratan Tata, Chairman of Tata Group.

Mr Tata said the various policy issues relating to the deal are yet to be clarified by the Government. Whether Tata Power will generate nuclear energy will depend on Government policy, he said.

Commenting on the performance of Tata Power, Mr Tata said that the company achieved the highest generation at 14,717 MUs in FY 2007-08. Trombay Thermal Power Station recorded the highest generation of 10,002 MUs, crossing the 10,000 mark for the first time, with a PLF of 85.61 per cent for the financial year. Jojobera Thermal Power Station also recorded highest generation at 2,862 MUs, he said.

Due to the recent Supreme Court judgment regarding the Mumbai licence area, the company would supply power in new areas. The company will not compete in BEST licence areas but will provide power to other areas. It will provide a new opportunity for the company but it will also require new investments, Mr Tata said.

Regarding raising fresh equity, Mr Tata said that the company could look at a rights issues or some other way of raising equity.

Mr Tata said that due to the investments in ultra mega power projects, the company’s debt equity ratio will increase to 1:2. Currently it is below one, he said.

Addressing investors, Mr P.R. Menon, Managing Director of Tata Power, said the company’s two-third coal requirement for mega projects has been tied up but it is still short of 7 million tonnes of coal.

For transporting coal from overseas mines, the company would require 10 capesize vessels. It has managed to charter three vessels and purchase process in under way for two more vessels, the Managing Director of Tata Power added.