Tata Power share price rise 4% after winning ₹1,500 crore worth transmission project in Rajasthan
Tata Power nearly rose 4% to ₹286 on BSE on Monday’s trading session after the firm bagged the Bikaner-III Neemrana-II Transmission project, which is a special purpose vehicle (SPV) established by PFC Consulting, a subsidiary of Power Finance Corporation. The projected cost of the venture is anticipated to be ₹1,544 crore, with commissioning expected within 24 months from the transfer of the project SPV. Tata Power is slated to oversee the maintenance of the transmission project for a span of 35 years.
The company secured the letter of intent by triumphing as the successful bidder in the Tariff-Based Competitive Bidding process. "The 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 kms transmission corridor from Bikaner-III pooling station to Neemrana II substation," Tata Power said in an exchange filing.
Upon successful initiation, the project will serve as a crucial component in the roadmap outlined by the Ministry of Power in 2022. This plan aims to seamlessly integrate more than 500 GW of renewable energy capacity into the national grid by 2030, according to Tata Power. Tata Power stock has nearly gained over 25% in the last one year and over 290% in the last three years.
The scrip closed at ₹281. 50 apiece on BSE on December 4, against previous close at ₹275.75 on December 1. According to Trendlyne data, Tata Power has an average target price of ₹248, indicating a potential 12% decline from its present market value.
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