Key Highlights

• 330 MW hydel power plant in Shrinagar, Uttaranchal
• 120 MW thermal plant at Jojobera, Jharkhand
• Q2 FY04 Profit after tax up 27%, H1 FY04 PAT up 24%

Hydro Power project at Shrinagar, Uttaranchal

Tata Power will put up 330 MW Shrinagar Hydro Power Project in the State of Uttaranchal. The Rs. 1,650 Crore project would be funded by a 70:30 debt equity ratio. The power plant will significantly augment electricity supply to the Northern Region.

Thermal Power Plant at Jojobera, Jharkhand

The Company has recently initiated construction of a 120 MW thermal power plant at Jojobera in the State of Jharkhand at a project cost of Rs. 350 crores. The total installed capacity at the Jojobera Power Plant will increase to 427.5 MW. The Power Plant will be fully operational in a record period of 24 months i.e. by October 2005.

Distribution Licenses

TPC is approaching the regulatory commissions for grant of 2nd distribution licenses in select areas

Franchisee of SEBs

TPC is approaching various SEBs under the franchisee scheme of Electricity Act 2003.

Trading License

TPC is setting up a new company for undertaking trading of Power and approaching CERC for grant of license

Financials - Q2 FY 04

The Profit After Tax for the period increased by 27% to Rs. 171 crores as compared to Rs. 135 crores in the same period last year.

Financials - H1 FY 04

• In the six months ended of FY 2003-04, Tata Power reported 24% increase in profit after tax at Rs 270 crores as compared to Rs 219 crores in the corresponding period last year.
• Sales to BSES during last year were higher due to breakdown in its Dahanu plant resulting in an increase in purchase of power from Tata Power in H1 FY03.
• Tata Power continued with its fuel rationalization exercise, which has resulted in a cost saving of Rs 79 crores through change in fuel mix and heat rate improvement. The Company is planning to further enhance these savings by optimizing on the various fuels used for generating power.
• Other expenditure was lower by Rs 39 crores in line with the various strategies implemented to improve efficiency and productivity.
• Interest costs have sharply reduced by Rs. 43 crores due to significant reduction on debt on account of repayments and rupee appreciation leading to gain in exchange.

Announcing the results, Mr. Firdose Vandrevala, Managing Director said, 'The organizational transformation in establishing Tata Power as a national player has begun to take a clearly defined shape. The ongoing process involved in reducing cost and enhancing reliability have started to yield tangible and encouraging results.'

Disclaimer Statement: Some of the statements in this document, except for the historical information, are forward-looking statements. These forward-looking statements include references to growth projections, plans, strategies, intentions and beliefs concerning our business and operating environment. There are risks, uncertainties and other factors that may cause actual results to differ materially from those projected by these forward-looking statements. These risks include, but are not limited to, the level of market demand for the company's services, competitive environment in the company's operating areas, market conditions, the company's ability to grow its existing businesses and to create, acquire and build new businesses, ability to attract, recruit and retain qualified and highly skilled employees, changes in technology, regulatory policy changes, currency fluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but are common to the industry. These statements are based on information currently available to us, and we assume no obligation to update these statements to reflect changed circumstances in future.

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