Tata Power is mulling various options to raise resources to fund a large capital expenditure programme for setting up projects with a total generation capacity of 7,000 MW over the next few years.
Company sources said the board is yet to take a decision on the funding pattern.
While the company has not revealed the quantum of funds it would require to set up new projects, given that a plant with a capacity of 1,000 MW requires funds of over Rs 4,000 crore, the overall capex for the new projects would require a massive fund infusion of Rs 28,000-to-30,000 crore.
Of this, the Mundra ultra mega power project itself would require an investment of Rs 16,000 crore, sources said.The company is planning a 70:30 debt-equity ratio for new projects. This translates to a debt of around Rs 20,000 crore. The company has started talking to different domestic and foreign agencies like International Finance Corporation, Asian Development Bank, Power Finance Corporation and State Bank of India, to raise loan.
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