Tata Power will soon add 500 MW of thermal generation capacity to augment supply of power to Mumbai. The company has already started feasibility studies at two locations Chandrapur and Vile, both in Maharashtra.

Tata Power chairman Ratan Tata announced the development at the company's 84th annual general meeting held on Monday. He added that the company is planning a minimum growth of 1,500 MW in the next five years in generation. Tata Power managing director FA Vandrevala, in a presentation made to the shareholders at the AGM, said that the company has adopted a three-pronged action plan for the company.

The action plan, which is based on the Tata Business Excellence Model, will include organizational transformation which will see the company move from being a Mumbai-centric player to a company which can exploit opportunity aggressively. Tata Power will look out for opportunities across the country. Under the action plan, the company will also identify cost reduction measures across all levels in the company. For growth, Tata Power is looking at the immense opportunities thrown open by the Electricity Act 2003. Mr Vandrevala said that the company will be cautiously aggressive. Tata Power will look out for opportunities for setting up greenfield projects and possible acquisitions, he added.

Mr Vandrevala informed shareholders that revenue from the stretegic electronics division of the company is likely to double, while that of the power systems business will be quadrupled in the current fiscal compared to the earlier fiscal. 

Mr Tata, replying to queries from shareholders on the sale of stake in Tata Petrodyne, said that the decision will be taken by the company board, while Mr Vandrevala on the sidelines of the meeting said that the company has already received 12 expressions of interest from parties interested in Tata Power's stake.