Tata Group stock which is India’s largest vertically integrated power company, jumped 3 percent in the day’s trade after it won a transmission project worth Rs. 1,544 Crores that will enable the evacuation of 7.7 GW of renewable energy.
At 3:23 p.m. the shares of Tata Power Limited were trading at Rs. 281.60, up 2.05 percent from its previous day’s close price of Rs. 276 and its market capitalization is Rs. 89,965 Crores.
Tata Power Limited has won the bid to acquire Neemrana-II Transmission Limited, a project special purpose vehicle (SPV) set up by PFC Consulting Limited, a subsidiary of Power Finance Corporation.
Tata Power received the letter of intent (LOI) after emerging as a successful bidder in the Tariff-Based Competitive Bidding (TBCB) process, as per the guidelines issued by the Union Ministry of Power.
The above transmission project, which will be developed on a Build-Own-Operate-Transfer (BOOT) basis, will enable the evacuation of 7.7 GW of renewable energy from the Bikaner Complex in Rajasthan. The project entails the establishment of a ~340 km transmission corridor from the Bikaner-III pooling station to the Neemrana II substation.
The estimated cost of the project is Rs. 1,544 Crores and is expected to be commissioned within 24 months from the date of the transfer of the project, SPV. Tata Power will maintain the transmission project for 35 years.
Upon successful commissioning, the above project will become a vital link in the roadmap unveiled by the Ministry of Power in 2022 for integrating over 500 GW of renewable energy capacity into the national grid by 2030.
Tata Power has a Solar EPC order book of Rs. 18,700 Crores and has 4,900+ public EV Charging points energized across 442 cities and towns.
Tata Power Limited has a total 14,381 MW Capacity mix which consists of 8,860 MW of Thermal, 1,007 MW of Wind, 880 MW of Hydro, 443 MW of Waste Heat Recovery, and 3,191 MW of Solar. It currently has 3,760 MW of Renewable capacity under construction.
In the transmission and distribution business, it has served 12.4 million customers in distribution and has done power transmission of 4,383 Circuit Kilometer(Ckm).
The company’s company’s revenue increased by 28.71 percent from Rs. 42,815.67 Cr in FY22 to Rs. 55,109.08 Cr in FY23, accompanied by increasing profits of Rs. 2,623.44 Cr to Rs. 3,809.67 Cr.
Tata Power Company which is a part of the famous Indian conglomerate the Tata Group, is India’s largest vertically integrated power company, primarily involved in the business of generation, transmission, and distribution of electricity.
Written by: Bharath K.S
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