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BlackRock Real Assets, UAE’s Mubadala Invest in India’s Tata Power Company

One of Tata's renewable energy projects. (Asharq Al-Awsat)
One of Tata's renewable energy projects. (Asharq Al-Awsat)
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BlackRock Real Assets, UAE’s Mubadala Invest in India’s Tata Power Company

One of Tata's renewable energy projects. (Asharq Al-Awsat)
One of Tata's renewable energy projects. (Asharq Al-Awsat)

India's Tata Power Company said on Thursday that a consortium led by the US-based BlackRock Real Assets and Abu Dhabi's Mubadala Investment Company would invest 40 billion rupees ($525.76 million) in the company’s renewable energy unit for a 10.53% stake.

The investment is expected to fund Tata Power Renewable Energy’s aggressive growth plans in the rooftop and electric vehicle charging space in India.

The final shareholding will range from 9.76% to 11.43% on final conversion.

The newly-created platform will consist of five distinct businesses delivering long-term, customer oriented solutions, including Utility Scale Solar, Wind and Hybrid Generation assets, Solar Cell and Module Manufacturing, Engineering, Procurement and Construction (EPC) contracting, Rooftop Solar Infrastructure, and Solar Pumps and Electric Vehicle Charging infrastructure.

Tata Power Renewables is targeting a portfolio of over 20 gigawatts (GW) of renewables assets over the next five years, from 4.9 GW currently, Tata Power said in a regulatory filing.

India is one of the world’s largest renewable energy markets and has recorded the fastest growing renewable energy supply with over 60% new capacity added over the past four years.

Its installed renewables capacity is expected to grow from 150 GW currently to 500GW by 2030 to satisfy India’s local energy demand driven by GDP growth and contribute to the government’s decarbonization ambition, as well as support the macro energy transition trends in Asia and around the world.

Dr. Praveer Sinha, CEO and Managing Director of Tata Power Company Limited, said: “The collaboration will support us to pursue exciting opportunities that lie ahead in the coming decades.”

“With one of the largest portfolios of solar and wind assets in the country and a very experienced management team, Tata Power Renewables is at the forefront of India’s ambition to secure greater energy stability for its citizens while positioning its economy for a low carbon future,” said BlackRock’s global head of real assets Anne Valentine Andrews.

Real Estate and Infrastructure Investments CEO Khaled Abdulla al-Qubaisi said: “As a responsible investor, Mubadala has a strong focus on renewable energy in multiple markets, so we are delighted to be co-investing with BlackRock Real Assets to help progress Tata Power Renewables’ ambitions in India.”

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US Job Growth Surges in September, Unemployment Rate Falls to 4.1%

A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
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US Job Growth Surges in September, Unemployment Rate Falls to 4.1%

A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo

US job growth accelerated in September and the unemployment slipped to 4.1%, further reducing the need for the Federal Reserve to maintain large interest rate cuts at its remaining two meetings this year.
Nonfarm payrolls increased by 254,000 jobs last month after rising by an upwardly revised 159,000 in August, the Labor Department's Bureau of Labor Statistics said in its closely watched employment report on Friday.
Economists polled by Reuters had forecast payrolls rising by 140,000 positions after advancing by a previously reported 142,000 in August.
The initial payrolls count for August has typically been revised higher over the past decade. Estimates for September's job gains ranged from 70,000 to 220,000.
The US labor market slowdown is being driven by tepid hiring against the backdrop of increased labor supply stemming mostly from a rise in immigration. Layoffs have remained low, which is underpinning the economy through solid consumer spending.
Average hourly earnings rose 0.4% after gaining 0.5% in August. Wages increased 4% year-on-year after climbing 3.9% in August.
The US unemployment rate dropped from 4.2% in August. It has jumped from 3.4% in April 2023, in part boosted by the 16-24 age cohort and rise in temporary layoffs during the annual automobile plant shutdowns in July.
The US Federal Reserve's policy setting committee kicked off its policy easing cycle with an unusually large half-percentage-point rate cut last month and Fed Chair Jerome Powell emphasized growing concerns over the health of the labor market.
While the labor market has taken a step back, annual benchmark revisions to national accounts data last week showed the economy in a much better shape than previously estimated, with upgrades to growth, income, savings and corporate profits.
This improved economic backdrop was acknowledged by Powell this week when he pushed back against investors' expectations for another half-percentage-point rate cut in November, saying “this is not a committee that feels like it is in a hurry to cut rates quickly.”
The Fed hiked rates by 525 basis points in 2022 and 2023, and delivered its first rate cut since 2020 last month. Its policy rate is currently set in the 4.75%-5.00% band.
Early on Friday, financial markets saw a roughly 71.5% chance of a quarter-point rate reduction in November, CME's FedWatch tool showed. The odds of a 50 basis points cut were around 28.5%.