The Tatas plan to convert Tata Electric Company (TEC) into an integrated energy firm with a presence spanning the entire energy spectrum, including power, liquefied natural gas and refining segments.
The concept, first mooted by group chairman Ratan Tata and subsequently discussed in several board meetings, has found favour with the present TEC management headed by H N Sethna. Ratan Tata is said to be bullish on the idea.
TEC is currently only into power generation and has tied up with Frances Total SA to set up LNG terminals in the country. The Tatas feel that TEC should also have a presence in upstream and downstream oil to turn it into an integrated energy company.
We have been discussing this, but there is no firm proposal as yet, said senior Tata sources. If the move finds favour, the Tatas would also not be averse to merging Tata Petrodyne and Hi-tech Drilling with TEC to help the latter achieve integrated status.
The rationale behind bunching the groups energy ventures under one umbrella structure is to draw on TECs existing expertise in power generation and build on it. Also on the anvil are plans for a foray into refining, which, if finalised, could be undertaken by TEC.
While Tata Petrodyne deals in exploration and has been offered some blocks in the Gulf of Cambay region, Hi-tech Drilling
The Tatas are shedding flab by merging companies into compact entities, representing distinct sectors.
