Tata Power’s share price was surging for the third straight session going up over 3% to hit a new 52-week high of ₹286.
What Happened: Tata Power has secured the Bikaner – III Neemrana – II Transmission Limited project. According to the press release, Tata Power triumphed in the Tariff-Based Competitive Bidding (TBCB) process. The project’s special purpose vehicle (SPV) was initially formed by PFC Consulting Limited, a Power Finance Corporation subsidiary.
The project is designed to facilitate the evacuation of 7.7 gigawatts of green power from the Bikaner Complex in Rajasthan. The nearly 340-km transmission corridor from the Bikaner-III pooling station to the Neemrana II substation forms the key part of this project, developed on a Build-Own-Operate-Transfer (BOOT) basis.
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The project cost is estimated at ₹1,544 crore and is to be maintained by the company for 35 years. The project handover to the SPV is expected within 24 months. Upon successful commissioning, it will play a vital role in the Ministry of Power’s 2022 proposal to integrate over 500 gigawatts of renewable energy capacity into the national grid by 2030.
Why It Matters: This move comes hot on the heels of Tata Power’s subsidiary, Tata Power Renewable Energy Limited (TPREL), winning a critical 200 megawatts Firm and Dispatchable Renewable Energy (FDRE) project with SJVN Limited.
This was TPREL's first FDRE power tender victory, aiming to offset about 9 lakh metric tonnes of CO2 emissions annually. The acquisition of the Bikaner – Neemrana Transmission project aligns with Tata Power’s ongoing efforts to expand its renewable energy portfolio and contribute to India’s green energy future.
Price Action: Tata Power’s share price was up 1.99% to trade at ₹281.50 as the markets opened on Monday.
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