Tata Power on Wednesday announced that its three wholly-owned subsidiaries, Coastal Gujarat Power Ltd (CGPL), Tata Power Solar Systems (TPSSL) and Af-Taab Investment Company (Af-Taab) are proposed to be merged with the parent company for greater synergies in financing, compliance and oversight.
The company said the merger is part of a strategic initiative to simplify the group holding structure and a broader plan to set the company for future growth through fiscal consolidation and strengthening of balance sheet. Coastal Gujarat Power operates the loss-making power plant in Mundra, Gujarat.
“The merger aims to achieve the long-term objectives by facilitating efficient use of cash and making available corporate support to the businesses of the said wholly owned subsidiaries as needed,” the company said. The firm also announced a 10 per cent jump in its profit after tax (PAT) for the quarter ended June 2020 at Rs 268 crore on the back of lower financing cost.