The Tata Power Company Limited

Meeting Proceedings

The One Hundred and Sixth Annual General Meeting (AGM) of The Tata Power Company Limited commenced at 2:30 p.m. IST and concluded at 5:14 p.m. IST, conducted through Video Conferencing / Other Audio Visual Means. The deemed venue was the Auditorium, Bombay House, Mumbai.

Directors Present: Mr. N. Chandrasekaran (Chairman), Ms. Anjali Bansal, Ms. Vibha Padalkar, Mr. Saurabh Agrawal, Mr. Sanjay V. Bhandarkar, Mr. Ashok Sinha, Mr. Tarun Bajaj, Mr. Pramod Agrawal, Dr. Praveer Sinha.

Others Present: Mr. Sanjeev Churiwala (Chief Financial Officer), Mr. Vispi S. Patel (Company Secretary), representatives from Statutory and Secretarial Auditors, and a Scrutinizer.

239 Members attended the meeting.

The Company Secretary briefed Members on the virtual meeting process and confirmed that the practice of proposing and seconding resolutions had been dispensed with.

The Chairman, Mr. N. Chandrasekaran, called the meeting to order, welcomed Members, and confirmed the quorum. Directors introduced themselves. Mr. Pramod Agrawal was welcomed to the Board, and Mr. Rajiv Mehrishi's inability to attend was noted. The Chairman also acknowledged the physical presence of Dr. Praveer Sinha, Mr. Sanjeev Churiwala, and Mr. Vispi S. Patel.

Workers' Union representatives were acknowledged for their contributions to industrial harmony.

The AGM was conducted via VC/OAVM in compliance with Ministry of Corporate Affairs guidelines, with proceedings live-streamed on the NSDL website. Six Authorised Representations were received, covering 46.86% of paid-up equity share capital.

Statutory Registers were available for inspection. Members who had not voted remotely could vote during the meeting. The Chairman confirmed no qualifications, reservations, or adverse remarks in the Statutory Auditors' Report or Secretarial Audit Report. The Notice convening the AGM and Auditors' Reports were taken as read.

Chairman's Address

The Chairman began by paying tribute to those lost in the Air India flight AI-171 incident and expressed condolences. He also mourned the passing of Padma Vibhushan Late Mr. Ratan N. Tata, acknowledging his invaluable contributions and unwavering commitment.

Global and Domestic Macroeconomic Environment

FY25 was characterized by geopolitical and economic volatility. Global GDP growth was projected at 3.3%, with India showing robust growth of nearly 6.5%. 2024 was the warmest year on record globally, with India experiencing significant heat waves.

Global geopolitical tensions continued to disrupt supply chains, emphasizing the importance of reshoring for long-term economic stability.

Key Trends

The Chairman highlighted the rapid adoption of Artificial Intelligence (AI) and Electric Mobility. AI data centres accounted for 1.5% of global electricity consumption, and electric vehicle sales increased by over 25%.

India's Energy Sector

India's energy sector experienced strong growth in renewables, with Solar PV output expected to rise 135% between FY25 and FY27. Wind and hydropower showed robust CAGRs. Global electricity demand grew over 4%, with India ranking as the third-largest electricity consumer.

A global shift towards electrification was noted, with oil's share in total energy demand dropping below 30%. India's clean energy capacity surpassed 200 GW, representing 46% of total installed capacity, making India the world's third-largest generator of solar and wind energy.

Company Performance Highlights

• Generation portfolio, including pipeline, exceeded 25 GW, with 65% being clean and green.
• A strategic alliance with Bhutan's Druk Green for over 5 GW of cross-border RE and hydro projects was established.
• Construction commenced on two major hydro projects (600 MW Khorlochhu in Bhutan and 1000 MW Bhivpuri pumped hydro in India).
• The 4.3 GW solar cell and module facility at Tirunelveli, Tamil Nadu, was commissioned.
• Consumer-focused solutions, including rooftop solar and EV charging, were expanded under the 'Ghar Ghar Solar' campaign.
• Transmission availability was maintained at 99.9%, with ₹4,800 crore worth of new projects secured.
• Distribution operations expanded across 7 discoms, serving 12.8 million customers, and received the highest service quality rating from the Ministry of Power.

Financial Performance

• The Company reported an excellent financial year with strong performance across all business verticals.
• Consolidated revenue grew by 5% to ₹64,502 crore.
• Reported Profit After Tax (PAT) increased by 26% to ₹5,197 crore.
• Return on Equity (RoE) improved to 12.8%, and Return on Capital Employed (RoCE) to 8.8%.
• Earnings Per Share (EPS) increased from ₹11.56 to ₹12.42.

The Chairman reaffirmed the Company's commitment to operational excellence and sustainable growth, highlighting progress on Project Aalingana towards net zero by 2045.

Shareholder Interaction and Chairman's Responses

Shareholders expressed condolences for recent losses and congratulated the management on the Company's performance and awards. Key areas of inquiry and discussion included:

• Feasibility of household energy generation, storage, and trading; capital expenditure; investments in grid modernization, smart metering, and AI; and timelines for 24x7 renewable energy supply.
• Arbitration status, proposed investments in coal-based projects, Mundra operations, and financials of hydro and wind energy units.
• Green hydrogen, international expansion plans, and EV charging network expansion.
• Plans for demerging renewables and distribution businesses, pumped hydro storage systems, rooftop solar promotion, and Discom acquisitions.
• Hydropower opportunities in Bhutan and the performance of the Tirunelveli solar module facility.
• Distribution network expansion, potential acquisitions, and NCLT companies.
• Transmission expansion, FY26 capex, commercial losses, safety measures, nuclear energy initiatives, and smart meter deployment.
• Projected share of renewables by 2030.
• Net zero emissions targets, renewable energy expansion, distribution growth, and Small Modular Reactor (SMR) technology benefits.
• Electricity supply and solar rooftops in South Mumbai.
• Plans to acquire Maharashtra DISCOMs.
• Capacity utilization, safety measures, and green hydrogen roadmap.
• Rooftop solar project margins and overall business roadmaps.
• Coal import, thermal usage, conversion of coal plants to gas, and CSR fund allocation for drinking water and healthcare.
• Transmission and distribution prospects, transmission losses, and overseas expansion.
• The role of pumped storage projects in enabling round-the-clock renewable energy supply.
• Attrition rate, market capitalization details, and suggestions for hybrid/virtual AGMs.
• Initiatives in the nuclear energy sector.
• Third-party sale of solar modules and exiting coal business.
• Plans to demerge the renewable business.
• Reduction of T&D losses, privatization of Discoms, debt ratio, and capex plans.

In response, the Chairman highlighted significant progress in round-the-clock renewable energy, enabled household participation in solar rooftop generation, and announced a capital expenditure plan of up to ₹25,000 crore. The Company was reviewing an arbitration award and considering an appeal. It had re-opened expansion in coal-based power due to increasing national demand. Financial highlights for Mundra, hydro, solar, and wind segments were provided. Green hydrogen was in R&D, and overseas investments were limited to Bhutan. The Company aimed to double its renewable capacity. Distribution operations had expanded, and the Tirunelveli plant was operational for internal use. Offshore wind and nuclear energy were under consideration. Smart meters were being rolled out, and the Company was on track to meet renewable energy targets by 2030. Rooftop solar adoption had a 10% margin, and attrition rate was 6.4%. Transmission losses in Odisha were reduced. The Bhivpuri project was approved. Donations were made to electoral trusts, and Agratas was established for EV batteries. The Company imported coal and had no plans to convert plants to gas. SMR technology was recognized for long-term potential. CSR suggestions were noted, and distribution licenses were applied for. The Net Debt to EBITDA ratio was 2.9x, aiming for 3.0-3.2x. No employee fatalities occurred, but public incidents were being addressed. Suggestions for hybrid/virtual AGMs and plant visits were acknowledged.

Resolutions Passed

The following resolutions were put to vote:

Summary of Voting Results

All resolutions were passed by the Members with the requisite majority.

The meeting concluded at 5:14 p.m. IST.