Electrifying game: Private power producers turn up investment cycle

Private power companies, led by Tata Power and JSW Energy, have been deleveraging their balance sheets over the past few years after investing cautiously and refinancing their debt to bring down the interest cost.

Tata Power, for instance, has reduced its consolidated net debt by Rs 11,400 crore in the last three years to Rs 36,559 crore as on March 31, 2021. To achieve that the company monetised some of its non-core investment and raised fresh equity from the promoters through a preferential issue. The company had a debt-equity ratio in the range of 2.5 two years back.

“We made a conscious