Shares of Tata Power remain in focus today after Tata Group company announced that it 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 country’s largest integrated power 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, it said in a BSE filing on Friday evening.

Extending gains for the second consecutive session, Tata Power shares rose 3.7% to hit a fresh 52-week high of ₹286 in the opening trade on the BSE, while the market capitalisation rose to ₹90,012 crore. The stock ended 2.9% higher at ₹275.75 levels on Friday.  

The power heavyweight breached its previous high of ₹278.50 touched in intraday trade on Friday. At the current level, the Tata Group stock 57% higher than its 52-week low of ₹182.45 touched on March 28, 2023.

As per the exchange filing, the Bikaner-Neemrana transmission project will boost renewable energy evacuation in India. The project, to be developed on a Build-Own-Operate-Transfer (BOOT) basis, will enable the evacuation of 7.7 gigawatt (GW) of renewable energy from the Bikaner Complex in Rajasthan.

“The project entails the establishment of a 340 kilometers transmission corridor from Bikaner-III pooling station to Neemrana II substation,” it said in the filing.

The estimated cost of the project is ₹1,544 crore and is expected to be commissioned within 24 months from the date of transfer of the project special purpose vehicle (SPV), a separate legal entity created by an organisation. Tata Power will maintain the transmission project for a period of 35 years, as per the release.

Following the 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, it added. 

Last week, Tata Power, in an analyst meeting at its Bhivpuri Hydro capacity in Maharashtra, gave an aggressive target to double its revenue and profit by FY27 at a capital expenditure of ₹60,000 crore over the next four years. The company expects to commission two projects of 2,800 megawatts (MW) by 2027 and 2028 and has identified three new potential sites with 9,000 MW capacity. The power major will invest about ₹13,000 crore for these two projects -- a 1,800 MW PSP at Shirawata, Pune district and a 1000 MW PSP at Bhivpuri in Raigad district, both in Maharashtra -- which will likely start construction by next year as various clearances are going on.

Earlier in August this year, Tata Power signed a memorandum of understanding (MoU) with the Maharashtra government to develop 2,800 MW of pumped hydro storage projects in the state, with a proposed total investment of approximately ₹13,000 crore. The Shirawata and Bhivpuri projects are likely to support the Maharashtra government's goal to achieve a $1 trillion economy by 2028, and will also generate employment for over 6,000 people. The pumped hydro project will support existing solar and wind plants to provide 24/7 power supply thereby promoting a greener energy landscape.

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