According to the report, the Tata Group company is in discussions with banks to secure a five-year loan through the external commercial borrowing (ECB) route, a financing mechanism that allows Indian companies to raise funds from foreign lenders.
Loan to be backed by overseas holdings
The proposed borrowing is expected to be backed by Tata Power's shareholdings in its subsidiaries in Indonesia and Singapore, the report said.
However, the discussions are still at a preliminary stage, and key terms of the transaction, including the pricing and final loan amount, have not yet been finalised. The company is yet to make an official announcement.
Why Tata Power is looking to raise funds
The planned fundraising comes as Tata Power continues to expand its footprint across renewable energy, power generation, transmission, distribution and electric vehicle (EV) charging infrastructure.
The company has been investing heavily in clean energy projects, including solar manufacturing, utility-scale renewable projects and rooftop solar installations, in line with India's energy transition goals.
Raising overseas funds through the ECB route could help Tata Power access long-term capital at competitive rates while diversifying its funding sources.
About Tata Power
Tata Power, part of the Tata Group, is one of India's largest integrated power companies. It has an installed generation capacity spanning thermal, hydro, solar and wind power and serves millions of customers through its distribution businesses.
In recent years, the company has accelerated its focus on renewable energy and aims to significantly increase the share of clean energy in its overall portfolio, making it a key player in India's transition towards sustainable power generation.