Exclusive: Tata Power MD expects power consumption to peak between 215-220 GW in 2022 summer months

In an exclusive conversation with Zee Business’ Financial Correspondent Saurabh Pandey, Tata Power Chairman and Managing Director Dr Parveer Sinha says the consumption of electricity (power) has reached to pre-covid levels at 190 giga watt before the summer months.

He also expects this demand is likely to continue and a new peak of 215-220 GW may be registered until the summer months this year. Sinha said, the power demand has been increased across sector and many companies are working on their full capacity.

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Tata Power has lately renewed a contract for 10 years to source the coal from biggest coal mining company in Indonesia (60 MT production each year) and has 30 per cent stake in the company.

Sinha terming it as positive move of renewal of contract, which was due from January 1, 2022, he said, the coal we source is of good quality and aids for the maximum power generation.

#ZBizExclusive | रूस-युक्रेन युद्ध के कारण #Coal की डिमांड बढ़ने पर #TataPower के MD और CEO डॉ. प्रवीर सिन्हा का क्या है कहना?

देखिए टाटा पावर के MD और CEO से सौरभ पांडे की खास बातचीत

@TataPower | @PandeySaurabh95

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The overall commodity prices globally have been pushed to new highs amid the war crisis between Russia and Ukraine. In this regard, the coal demand has also jumped as the supply from Russia has been stopped and the focus is shifted to Indonesia, South Africa, and Australia for the same, he said.

The managing director of Tata Power expects the coal price softening in next 3-6 months, with the easing up of geopolitical situation between Russia-Ukraine.

Tata Power generates and supplies electricity, it constructs and operates independent power plants, as well as specializes in transmission and distribution of electricity.

In December-end quarter of FY22, the company’s revenue surged 43.6 per cent year-on-year to Rs 10,913 crore, mainly due to expanded operations in Odisha DISCOMS, higher project execution by Tata Power Solar Systems (TPSSL) and strong performance of other businesses.

According to Geojit Financial, “Strong execution and increased order wins along with technological innovations will continue to support the growth prospects of the company.” The brokerage reiterate Buy rating on the stock with a target price of Rs 263 per share.

The stock on Friday closed flat with 0.4 per cent gains to Rs 233.15 per share on the BSE as compared to 0.15 per cent rise in the S&P BSE Sensex.