With a better credit rating, Tata Power might also be able to squeeze a few more rupees by refinancing the Rs.5,500 crore debt. One, these assets come with extra land of around 500 acres which can help Tata Power increase capacity when required. If it decides to build new solar power plants today, it can expect to spend Rs.6 crore per megawatt (MW). One worry for investors would be how will Tata Power, which already has a consolidated net debt of Rs.38,600 crore, finance this purchase. The weighted average tariff of solar assets (including those under implementation) works out to Rs.8 per unit, according to the management in an analysts’ conference.

Source: Mint June 13, 2016 20:15 UTC