Tata Power acquires Bikaner-Neemrana Transmission Project to boost Renewable Energy evacuation in India

Tata Power (the Company), one of India's largest integrated power companies, has won the bid to acquire Bikaner-III Neemrana-II Transmission Limited, a project special purpose vehicle (SPV) set up by PFC Consulting Limited, a subsidiary of Power Finance Corporation.

The company received the letter of intent (LOI) after emerging as a successful bidder in the Tariff-Based Competitive Bidding (TBCB) process, as per the guidelines issued by the Union Ministry of Power.

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.

The Company will maintain the transmission project for a period of 35 years. The project is estimated to cost ₹ 1,544 crore and is expected to be commissioned within 24 months from the date of transfer of the project SPV.

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.

Shares of Tata Power Company Limited was last trading in BSE at Rs. 275.75 as compared to the previous close of Rs. 267.95. The total number of shares traded during the day was 3845247 in over 41426 trades.

The stock hit an intraday high of Rs. 278.50 and intraday low of 268.50. The net turnover during the day was Rs. 1058512868.00.

Source : Equity Bulls

Keywords

TataPowerCompany INE245A01021 Acquisition BikanerNeemrana TransmissionProject