Tata Power shares in focus today as arm inks solar deal with Tata Motors

Shares of Tata Power Ltd are in focus today after the company’s subsidiary Tata Power Renewable Energy Ltd (TPREL) inked a power purchase agreement (PPA) for 9MWp on campus solar plant with Tata Motors' Pantnagar plant in Uttarakhand. The solar plant will be the largest on campus solar facility in Uttarakhand. The project will be commissioned within six months from the PPA execution date.

In the previous session (Monday), the Tata Power stock ended 4.07% higher at Rs 239.35 on BSE.  The Tata Group stock opened flat at Rs 230.05 on BSE.  It hit an intraday high of Rs 240.30, rising 4.47% on BSE. Total 6.28 lakh shares of the firm changed hands amounting to a turnover of Rs 14.81 crore on BSE. Market cap of the firm stood at Rs 76,480 crore.

In terms of technicals, the relative strength index (RSI) of the stock stands at 60.6, signaling the stock is neither oversold nor overbought. Tata Power has a one-year beta of 1, indicating average volatility during the period. Tata Power shares are trading higher than 5 day, 10 day, 20 day, 50 day, 100 day, 200 day moving averages.

The project will utilise rooftop and ground-mounted units for installation, TPREL said.

Tata Motors also mentioned that a 7 MWp solar project was previously implemented by TPREL and Tata Motors at the Pantnagar production facility. Tata Motors reported that the cumulative solar capacity of Pantnagar plant now stands at 16 MWp. According to the press repor, these solar installations are expected to produce 224 lakh units annually, or almost 60 percent of their annual energy needs.

According to Tata Power, TPREL's total renewable capacity is anticipated to reach 7,783 MW, with 3,651 MW of projects now in various phases of development. Its current operational capacity is 4,132 MW, made up of 993 MW from various sources and 3,139 MW of solar electricity.

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