Mumbai (Maharashtra) [India], May 17 (ANI): Tata Power's board of directors will meet on May 19 to consider issuing non-convertible debentures, bonds or other debt securities on a private placement basis to improve its liquidity position.
The move comes amid a slump in demand for power because of COVID-19 and increasing risk of distribution companies delaying payments.
The disruption caused by COVID-19 has worsened the situation in the power sector, which was already reeling under low demand as economic activity took a hit. The demand has further slumped now.
However, Tata Power managed to get funding under the Long Term Repo Operation (LTRO) scheme which will help it manage working capital requirements in case distribution companies delay payments beyond normal periods.
Hence the company and its subsidiaries withdrew their requests for availing moratorium on its payments.
Tata Power is India's largest integrated power company and has an installed capacity of 10,763 megawatts together with its subsidiaries and jointly controlled entities.
It has a presence across the entire power value chain -- generation of renewable as well as conventional power including hydro and thermal energy, transmission and distribution, trading and coal and freight logistics. (ANI)