Tata Power‘s share price was rocketing at the bourses on Monday morning, going up 3% to hit an intraday high of ₹458.85.

What Happened: The surge today comes as the Central Electricity Authority (CEA) has given the green signal to two more hydro-pumped storage projects (PSPs) in Maharashtra.

The CEA’s approval includes the 1,500-megawatt Bhavali project, developed by JSW Energy, and the 1,000-megawatt Bhivpuri project, developed by Tata Power. The projects are projected to provide a combined storage capacity of over 15 gigawatt-hours.

Tata Power and the Maharashtra Government had signed a memorandum of understanding (MoU) to develop two large hydro projects with a combined capacity of 2,800 megawatts in the state in August. These projects, with an estimated investment of around ₹13,000 crore, will be situated at Shirawta in Pune (1,800 megawatts) and Bhivpuri in Raigad (1,000 megawatts).

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The Ministry of Power has stated that these projects will speed up the integration of renewable energy and aid in the transition to a greener energy system. Supported by the Central Water Commission, Geological Survey of India and Central Soil and Materials Research Station, these projects are expected to be commissioned and completed by 2028.

The CEA plans to approve at least two PSPs each month, based on the completion of detailed project reports (DPRs) by the developers. The CEA has set a target to approve 15 hydro projects of 25,500-megawatt capacity in 2024-25, with four PSPs of 5,100-megawatt capacity already approved.

Earlier in the month, Tata Power informed about a legal dispute with Indonesia-based Adaro International over a coal supply agreement. The conflict, which began with a contract signed in August 2020 for the supply of high-calorific coal for Tata Power’s Trombay plant, has both companies seeking compensation from each other.

Price Action: Tata Power’s share price was up 2.89% to trade at ₹457 in the early hours of trading on Monday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.