Mistry woos Tata Power investors to stay on board

Mumbai, Dec 10 (IANS) Tata Sons’ ousted chairman Cyrus P Mistry has sought the support of Tata Power Company’s shareholders to remain as director on its board, said the company on Saturday.

Mistry’s appeal to the investors comes ahead of the company’s Extraordinary General Meeting (EGM) here on December 26, convened to consider the resolution for his removal at the behest of the promoters (Tata Sons Ltd).

In a regulatory filing to the stock exchanges, the company has made public Mistry’s representation to its shareholders, seeking their support against the special resolution to remove him from the board.

Claiming that the company’s operating margins improved in the last three fiscal years during his tenure as its Chairman, Mistry said its performance was better than its competitors despite re-rating of the power sector in the country.

“The company faced several challenges in 2012 and the overwhelming threat to its survival was on account of situation at Mudra Ultra Mega Power Project (CGPL), which was set up to double the generation capacity with $2.6-billion capital investment with a plan to use Indonesian coal,” he said in his letter.

The letter, identical to similar representation Mistry made to investors of Tata Group’s other firms ahead of their EGMs, convened for his removal from their boards as director, also raised issues of corporate governance, his “abrupt” ouster as Tata Sons chairman on October 24, nearly four years in December 2012 after he took over from Ratan Tata, who was re-appointed as an interim chairman.