Shares of Tata Power jumped 4 per cent in early trade on Monday morning; Here’s why
Shares of Tata Power jumped 4 per cent in early trade on Monday morning after the company declared its successful bid to acquire the Bikaner-III Neemrana-II Transmission renewable energy project for approximately Rs 1,544 crore. This energy project is an SPV established by PFC Consulting Limited, a subsidiary of Power Finance Corporation.
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A special purpose vehicle (SPV) or entity (SPE) is a subsidiary created by a parent company to segregate and manage specific financial risks.
It said that 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-kilometre transmission corridor from the Bikaner-III pooling station to the Neemrana II substation.
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Further, as per the filing, upon successful commissioning, the project will become a vital link in the roadmap unveiled by the Ministry of Power in 2022 for integrating over 500 GW of renewable energy capacity into the national grid by 2030.
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Since January 2023, shares of Tata Power have gained over 33 per cent against the Nifty 50’s rise of over 12 per cent.
