Tata Power Co. (TPWR), India’s second- largest generator, is seeking investors to help its renewables unit more than double capacity in five years and acquire projects at home and overseas.
The unit of India’s largest business group, which plans to spend about 17.5 billion rupees ($328 million) annually, may also consider selling shares in Tata Power Renewable Energy Ltd., Rahul Shah, chief of business development at the generator, said in a telephone interview from Mumbai. The company plans to build 2,000 megawatts of wind, solar, hydro and geothermal plants from a total of 852 megawatts last year.
Tata Power, part of the group led by Cyrus Mistry, is planning to boost clean-energy generation to a fourth of its capacity as coal prices increase and the costs of alternative sources decline. A shortage of fossil fuel used in thermal power projects has prompted India to grant incentives to wind and solar plants to cut chronic blackouts that the government says shaves about 1.2 percentage points off annual economic growth.