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Tata Power is exploring the establishment of an infrastructure investment trust (InvIT) for its near 3 gigawatt (GW) renewable energy portfolio to deleverage its balance sheet by a fourth and raise growth equity from investors, said people with knowledge of the matter. If it goes ahead, Tata Power will join Larsen and Toubro, Reliance Industries, Sterlite and Piramal Enterprises in creating investment trusts for operational infrastructure assets.
Tata Power, the country’s largest integrated power company, has 2,549 MW of renewable capacity and a presence in 14 states across India. Another 400-500 MW is in the pipeline. It’s largely a solar portfolio on account of its $1.4 billion acquisition of Welspun Energy’s assets in June 2016.
