Tata Finance Ltd, the Rs 2,600-crore financial services arm of the Tata group is entering the business of power generation through non-conventional renewable energy sources.
The company plans to set up a 15 mw wind generated power plant in two phases of 7.5 mw each in Maharashtra.
The strategy behind entering an unrelated area to its core finance business is to take advantage of the incentives offered by the Maharashtra government for wind generation of power since June 1998. These include selling the power generated through wind mills via the MSEB grid as well as sales tax exemption to the amount for 15 years on a transferable basis.
According to Tata Finance officials, the company will sell power to another Tata group company through the grid and also be able to transfer the sales tax exemption to the client. While Tata Finance has not use for a sales tax exemption, being a services company, other Tata group manufacturing firms will be able to utilise the benefit once it is transferred to them.
At its forthcoming annual general meeting on December 1, the company is planning to seek shareholder permission to alter the firm's memorandum of understanding to engage and deal in all aspects of the business of generation, transmission, sale, supply and distribution of electricity in all its aspects in India and abroad by the establishment of wind power plants or any other types of power generating plants using non-conventional energy sources of a renewable nature as may be in use now or developed or invented in the future. a name="description" content="Kanpur-based scooter major LML Ltd is launching its motorcycles in January. Besides, it has tied up with an overseas technology provider for scooter and scooterette technology.">
