TATA power has won a license to expand its distribution in South Mumbai, earlier a preserve of Brihanmumbai Electric Supply & Transport Undertaking. It has formulated its capital expenditure plan to the tune of over Rs 2,200cr for the next five years for enhancing network and supply infrastructure of Mumbai.
However, MERC, the authority that gave it license for the Mumbai operations, is not satisfied with the network roll out plan of the company as it does not specify the manner of supply to the lowest-consumption customers in the area of license. Also, the agency thinks that its past concerns in the plan being submitted to it have not been addressed.
For funding its capital expenditure plan, TATA power is set to take the route of debt and equity in the ratio of 7:3. In the last three fiscal years ending Feb 14, the company had incurred capital expenditure of Rs 707cr.