Tata Power expects India's electricity demand to grow between 6% and 7% in FY27, supported by rising consumption and continued capacity additions across the country. The company also remains committed to its planned capital expenditure of ₹25,000 crore this financial year as it accelerates investments in renewable energy, transmission, and distribution.
Speaking in an interview with CNBC-TV18, Tata Power CEO and Managing Director Dr. Praveer Sinha said the company is witnessing strong demand trends despite seasonal disruptions and expects project execution to pick up in the second half of the financial year.
According to Sinha, electricity demand surged nearly 11% in May and over 9% in June, driven by delayed monsoon conditions and sustained consumption across the country. He expects overall power demand growth of 6-7% for FY27.
Tata Power invested ₹5,300 crore during the April-June quarter, marking its highest-ever first-quarter capital expenditure. The company remains on track to spend ₹25,000 crore in FY27, with around 2.5 GW of utility-scale renewable energy capacity scheduled for commissioning. Investments will also continue in transmission infrastructure, distribution networks, and the Mumbai transmission project.
Sinha said Tata Power's 4.3 GW solar cell and module manufacturing facility is operating at full capacity, having crossed 1 GW of module production in a single quarter for the first time.
However, the company does not plan to expand its solar cell and module capacity due to excess domestic supply. Instead, it will invest in wafer and ingot manufacturing through two phases of 5 GW each, with construction expected to begin in October and commissioning targeted by January 2028.
On the Mundra power plant, Sinha said supplementary power purchase agreements (SPPAs) with three states are expected by August and the fourth by September. Once all agreements are signed, the project is expected to operate on a cost pass-through basis, helping eliminate losses.
Tata Power is also advancing its nuclear energy plans. Sinha said the company is in discussions with the Department of Atomic Energy and NPCIL, while land acquisition and geotechnical studies are already underway at three potential sites. The company is evaluating both 220 MW and 700 MW reactor units and is awaiting the government's licensing framework before moving ahead.
He also noted that Uttar Pradesh's discom privatisation process has been temporarily paused until after the state elections but expects momentum in parallel distribution licensing and other power sector reforms over the next six months.
With robust electricity demand, record capital expenditure, expanding renewable capacity, and progress across strategic initiatives such as nuclear energy and distribution reforms, Tata Power remains focused on long-term growth. As outlined by CEO Dr. Praveer Sinha in his interview with CNBC-TV18, the company is positioning itself to capitalise on India's rising energy needs while strengthening its clean energy and infrastructure portfolio.
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Published on: Jul 28, 2026, 3:22 PM IST
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