Tata Power

Tata Power Company Ltd has informed BSE that Af-Taab Investment Company Ltd a wholly owned subsidiary of the Company, has acquired 50,000 Equity Shares of Nelco Ltd. Consequently, Nelco Ltd has become a Subsidiary of the Company.

Tata Power is India’s largest private sector power utility, with a reputation for reliability. It has an installed power generation capacity of 2203 Mega Watts and a presence across the power business system -generation (thermal, hydro, solar and wind) transmission and distribution. The Thermal Power stations of the company are located at Trombay in Mumbai, Jojobera in Jamshedpur and Belgaum in Karnataka. The Hydro stations are located in Raigad district Maharashtra and the Wind Farm in Ahmednagar. Due to efficient management of the network, the Company's Transmission & Distribution losses are at 2.4%.

STRATEGIC ELECTRONICS DIVISION
The division has been involved in the development of Pinaka- India’s sophisticated multi-barrel rocket launcher. After extensive user trials, the Pinaka is to be inducted in the Indian Army. With this, the division is qualified to receive orders of Pinaka. It is currently executing orders worth Rs.41 Crore for the Indian Army. The division has also developed Smart Card Based Energy Metering solutions

Tata Power Trading Company Limited (TPTCL), a wholly owned subsidiary of the Tata Power Company (TPC) has been awarded the first ever power trading license by the Central Electricity regulatory Commission (CERC) under section 14 of the Electricity Act 2003. TPTCL is the first trading entity to be granted a trading license, enabling it to carry out transactions all over India.


POWER SYSTEMS DIVISION
TPC’s Power Systems Division currently has an order book of Rs. 352 Crore as on 30th September 2004 as against Rs. 103 Crore in the corresponding previous period. TPC’s Power Systems Division is currently executing 14 transmission line and APDRP projects in the States of Jammu & Kashmir, Maharashtra, Uttranchal, Jharkhand, Bihar and Bangladesh. In a ‘first of its kind’ project, Tata Power has entered into a 51:49 joint venture with PowerGrid Corporation of India for the 1200 km Tala transmission project. The Joint venture is India’s first transmission project to be executed with private/public partnership since the enactment of the Electricity Act. The project was conceptualized with the objective of evacuating surplus power from Bhutan and transmitting it to the power deficit states in North India

Order position will increase this year due to their successful entry into EPC Transmission Project Business in Middle East.

Peformance Persepective

Dividend EPS
2000 37% 20
2001 42% 26
2002 50% 26
2003 65% 26
2004 70% 26
2005 75% 28

CMP - 456.90

Overall a safe stock for long term