Cyrus Mistry seeks shareholders support to stay on Tata Power board
Claiming that Tata Power fared much better during his tenure than earlier, ousted Tata Group Chairman Cyrus Mistry has asked for support from company's shareholders against promoters'decision to remove him from board.
New Delhi: Claiming that Tata Power fared much better during his tenure than earlier, ousted Tata Group Chairman Cyrus Mistry has asked for support from company's shareholders against promoters' decision to remove him from board.
An Extraordinary General Meeting (EGM) is scheduled on December 26, 2016, to consider the resolution for removal of Cyrus P Mistry as its Director.
"At the consolidated level for Tata Power,...Efforts resulted in a marked improvement EBITDA over the last three years. There has been a re-rating of the power sector in India over the last few years, and hence it would not be appropriate to compare its performance vis-a-vis Sensex. However, the company has fared better than most of its competitors during this time," Mistry said in a letter to shareholders.
Mistry joined the Board of Tata Sons in 2006 and was appointed Chairman of its Board in December 2012. He is currently Chairman of Tata Power.
He said that Tata Power faced several challenges in 2012 and the overwhelming threat to its survival was on account of situation at Mudra Ultra Mega Power Project (CGPL).
As per the letter, CGPL had been set up to almost double the generation capacity of the company with a huge capital investment of USD 2.6 billion and the plan was to use Indonesian coal.