The Tata Power Company has revealed that it has obtained a Letter of Intent (LOI) from REC Power Development and Consultancy Limited for a power transmission project.

What Happened: The utility firm based in Mumbai has been chosen to take over ERES- XXXIX Power Transmission Limited, a project-specific purpose vehicle (SPV). The project, which will be developed on a Build-Own-Operate Transfer basis, is set to provide transmission service for a span of 35 years, commencing from the Scheduled Date of Commercial Operation (SCOD) on December 31, 2027. The annual transmission charge is ₹289.729 crore.

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The project’s scope includes the construction of a 2 x 1500 mega volt-amperes, 765/ 400 kV kilovolt GIS substation at Gopalpur with associated bays at Angul and Gopalpur, a 190 km of 765-kilovolt double circuit transmission line from the existing Angul substation of PGCIL to the proposed 765 kilovolt GIS substation at Gopalpur, and a 12 km of 400 kilovolt line from the upcoming OPTCL substation at Gopalpur to the proposed 765 kilovolt GIS substation at Gopalpur.

Earlier last month, Morgan Stanley upgraded the stock's rating to "overweight" from "underweight" and raised the price target for Tata Power shares to ₹577.

Price Action: Tata Power’s share price was down 1.62% to trade at ₹453 in the early hours of trading on Thursday.

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