Tata Power’s in Solar Industry Growth via the ‘PM Surya Ghar Yojana’
Tata Power is making substantial investments in the solar industry, focusing on expanding its customer reach via the ‘PM Surya Ghar Yojana’. This initiative, backed by the government, aims to equip over one crore households with solar rooftops. By actively participating in this scheme, Tata Power seeks to capitalize on the growing interest in renewable energy solutions while simultaneously contributing to the nationwide effort to enhance sustainability and reduce carbon emissions.
Through strategic involvement in such government-led programs, Tata Power positions itself as a key player in the transition towards cleaner and more environmentally friendly energy sources, ensuring a brighter and greener future.
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What is PM Surya Ghar Scheme?
Our country’s Prime Minister Narendra Modi has announced the launch of PM Surya Ghar Free Electricity Scheme, under which up to 300 units of free electricity will be provided every month. The government’s aim behind launching this scheme is to illuminate one crore houses in the country by providing free electricity.
More than Rs 75000 crore will be invested by the Central Government for this project. Under this scheme, solar panels will be installed on people’s homes so that they will get the benefit of up to 300 units of free electricity. Prime Minister Narendra Modi has given information about this scheme by tweeting on his Twitter account.
Purpose of PM Surya Ghar Free Electricity Scheme
The main objective of starting PM Surya Ghar Muft Bijli Yojana by the Central Government is to provide free electricity facility to the people by installing solar panels on the roofs of their houses. Through this scheme, electricity bills in people’s homes will reduce and their income will also increase. Through this scheme, every house will be illuminated and there will be savings in electricity bills. Besides, installation of solar panels will also keep the environment clean.
In order to further sustainable development and people’s wellbeing, we are launching the PM Surya Ghar: Muft Bijli Yojana. This project, with an investment of over Rs. 75,000 crores, aims to light up 1 crore households by providing up to 300 units of free electricity every month.
— Narendra Modi (@narendramodi) February 13, 2024
Benefits Under PM Surya Ghar Free Electricity Scheme
Through this scheme, the subsidy amount will be sent directly to the bank account of the beneficiary citizens. The government has taken special care that there should not be any burden on the people from subsidies to heavily concessional bank loans. An online portal has also been launched by the government for this scheme.
Prime Minister Narendra Modi has said that to popularize this scheme at the grassroots level, urban local bodies and panchayats will be encouraged to promote solar systems on the rooftops of everyone’s homes in their respective areas. This scheme will help people save on electricity bills, earn more income and create new employment opportunities.
How Tata Power is Involving?
During the Q4FY24 earnings conference call, the company’s management expressed satisfaction with the performance of its solar business, stating that it has performed exceptionally well. They emphasized their commitment to meeting the growing demand for power by ensuring that all their plants, including coal-based and renewable ones, operate at full capacity.
Currently, Tata Power holds approximately 13.1 percent of the market share in Solar Rooftop engineering procurement and construction (EPC). CEO Praveer Sinha stated that they anticipate meeting the coal requirements of consumers in the coming months. Additionally, he highlighted the company’s strong performance in the renewables sector in FY24 and projected the implementation of nearly four gigawatts of projects in FY25. Sinha expressed confidence that the renewable business would lead the market with over 5,500 installations, signaling promising results.
Tata Power’s Financial Performance
In terms of financial performance, Tata Power reported a net profit of Rs 1,045.59 crore for Q4FY24, marking an 11.37 percent year-on-year growth driven by the robust performance of its core thermal coal generation business. Moreover, the company’s revenue from operations increased by 27 percent to Rs 15,846.50 crore in the quarter ending March 31. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also rose by eight percent to Rs 3,358 crore from Rs 3,101 crore in Q4FY23.
