Good day, we at GEPL are bullish on Tata Power, though we have not the stock, it seems to be a good investment idea. Tata Power it is one of the biggest private sector utility having presence in all areas of power sectors. The Company has assured fuel supply agreements for its power projects, 25% stake in Indonesian Coal companies and 2 coal blocks in India making it a well integrated company.
Tata power currently has a generation capacity of about 3000 MW. It plans to add 750 MW in FY11, and scale it up to 25000 MW till FY17. The major projects under implementation, Mundra UMPP and Maithon Power, are well on schedule to get operational. The Company has recently achieved long awaited clearance for its 1600 MW power plant in Maharashtra. With regards to coal business, the production was 65 Mt in FY10 and is expected to increase to 75 Mt in FY12 and 100 Mt till FY17. Interestingly, Tata power has increased its consumer base by about 200% in last six months, thus fueling its future growth.