Shares of Tata Power jumped on Tuesday after it announced the signing of a memorandum of understanding (MoU) with the Rajasthan government.

What Happened: The agreement, inked on Monday during the Rising Rajasthan Investor Meet in New Delhi, entailed a ₹1.2 lakh crore investment plan in power distribution, transmission and renewable energy. The ambitious 10-year plan aims to transform Rajasthan into a power surplus state, ensuring round-the-clock clean, affordable and reliable power supply, the company said in its press release.

The investment will cover various sectors including renewable energy projects, transmission, distribution, nuclear power, rooftop installations and electric vehicle (EV) charging.

See Also: NHPC Signs MoU With Rajasthan Govt For ₹50,000 Cr Renewable Energy Projects

The MoU includes a significant investment of nearly ₹75,000 crore dedicated to renewable energy projects in addition to the development of a 2,000-megawatt solar module manufacturing facility in Jodhpur, with an investment of ₹2,000 crore. The agreement also proposes a ₹1,000 crore investment in setting up 1 lakh EV charging points across Rajasthan.

The agreement is projected to generate over 28,000 jobs in the next 10 years, contributing significantly to the state’s socio-economic growth, the company added. The large-scale integration of renewables will also lower energy costs for industries and consumers, positioning Rajasthan as an attractive destination for green investments.

The agreement was signed in the presence of Rajasthan’s Chief Minister Bhajan Lal Sharma. Praveer Sinha, CEO and managing director at Tata Power, said, “Our partnership with the Government of Rajasthanis a testament to our shared vision of building a low-carbon, resilient, and integrated energy ecosystem in the state.”

Price Action: Tata Power rose 1.11% to trade at ₹487.95 on Tuesday morning.

Read Next: IPO-Bound NTPC Green Energy Inks MoU With Rajasthan Govt For 25 GW Renewable Energy Projects