Tata Power is exploring the expansion of its thermal power capacity through acquisitions of power plants and brownfield expansions at several of its existing facilities, according to the report. This move signals a reversal of the company’s earlier strategy to exit the coal-based power sector. India's largest private integrated utility had previously pledged to shift to clean energy by phasing out coal usage between 2040 and 2045.

The reassessment at Tata Group is partly driven by underwhelming returns from its wind energy business and the increasing global reliance on coal-based power, particularly in India. Until now, Tata Power had committed to focusing exclusively on renewable energy, with a goal of achieving two-thirds of its total capacity from renewables by 2030.

Tata Power has yet to address this matter, while some of its major competitors, including JSW Power and the Adani Group, and have already gained an early advantage through recent thermal acquisitions.

Tata Power operates thermal power stations at six locations: Trombay (Mumbai), Jojobera (Jharkhand), Haldia (West Bengal), Mundra (Gujarat), Maithon (Dhanbad), and Prayagraj (Uttar Pradesh). Additionally, it runs power plants for Tata Steel in Kalinganagar (Odisha) and Jojobera (Jharkhand).