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Tata Power Eyes UP Discom Privatization, Plans Rs25,000 Cr Capex with Focus on Renewables & Core T&D Growth

Tata Power is set to bid for two major electricity distribution companies in Uttar Pradesh—Dakshinanchal Vidyut Vitran Nigam and Purvanchal Vidyut Vitran Nigam—as part of its strategic push to expand its core transmission and distribution (T&D) business, the company’s largest revenue generator. MD & CEO Praveer Sinha confirmed that bid documents are expected by the end of May, and the discoms will be split into six operational circles.

Currently serving 12.5 million customers across Mumbai, Delhi, Ajmer, and Odisha, Tata Power aims to scale to 40 million consumers in five years. The UP discom privatization follows the success of Tata Power's Odisha discoms, where profits surged by 86% to Rs439 crore in FY25 from Rs236 crore in FY22, showcasing operational efficiency and financial turnaround.

Tata Power has announced a Rs25,000 crore capex plan for FY26, with 50% allocated to renewables, 30% to T&D, and 20% to generation. The company spent Rs16,000 crore in FY25, short of its Rs20,000 crore target, due to delays in project execution.

Additionally, Tata Power plans to exit non-core businesses like Tata Projects and is preparing for entry into the small modular nuclear reactor segment, pending legislative clarity on private sector participation under the Nuclear Power Act.