Tata Power gains after acquiring wind farm in Gujarat

Tata Power rose 1.77% to Rs 83.20 at 12:26 IST on BSE after the company said its wholly-owned subsidiary signed an agreement for acquiring 39.20 megawatts wind farm in Gujarat.

The company made the announcement during trading hours today, 8 October 2013.

Meanwhile, the BSE Sensex was up 92.64 points, or 0.47%, to 19,987.74.

On BSE, 10.59 lakh shares were traded in the counter compared with average volume of 4.46 lakh shares in the past one quarter.

The stock hit a high of Rs 83.95 and a low of Rs 82.10 so far during the day. The stock hit a 52-week low of Rs 68.25 on 6 August 2013. The stock hit a 52-week high of Rs 113.20 on 5 December 2012.

The stock had outperformed the market over the past one month till 7 October 2013, rising 15.30% compared with the Sensex's 3.24% rise. The scrip had, however, underperformed the market in past one quarter, falling 4.50% as against Sensex's 2.05% rise.

India's largest integrated power company has an equity capital of Rs 237.31 crore. Face value per share is Re 1.

Tata Power said that its 100% subsidiary, Tata Power Renewable Energy (TPREL), today, 8 October 2013, signed a share purchase agreement (SPA) for acquisition of 100% shareholding in AES Saurashtra Windfarms (ASW), a 100% subsidiary of AES Corporation.

ASW owns and operates a 39.20 megawatts (MW) wind farm near Dwarka in Jamnagar district of Gujarat. The project, which is fully operailonal since January 2012, has executed a power purchase agreement with Gujarat Urja Vikas Nigam (GUVNL) for sale of the electricity at a tariff of Rs 3.56 per kilowatt hour (kWh) for the duration of the project. The project is registered with United Nations Framework Convention on Climate Change (UNFCCC) as a Clean Development Mechanism (CDM) project and is eligible to receive Certified Emission Reductions (CERs or carbon credits). The project is also registered under the Generation Based Incentive scheme of MNRE.

TPREL was selected as the preferred bidder in a process conducted by AES Corporation for sale of its 100% stake in ASW. The acquisition is subject to certain conditions, which are expected to be addressed in a few months time.

With this acquisition, Tata Power's total generation capacity will increase to 8560 MW and its Wind Operational Generation capacity to 437 MW with WTGs located across five states Maharashtra, Rajasthan, Gujarat, Tamil Nadu and Karnataka, which are the leading states in promoting wind power generation in India, Tata Power said in a statement.

Speaking on achieving this milestone, Mr. Anil Sardana, Managing Director, Tata Power, said, "Tata Power is committed to generating 20-25% of its total generation capacity from clean energy sources and is proud to have signed this SPA to acquire 39.2 MW operational wind farm. The project is a clean energy project, which will enhance and increase company's clean energy footprint. This is our second acquisition of an operating wind asset and we are in constant look out for similar opportunities in respect of wind and solar plants. This is yet another step towards the company's commitment to sustainability."

The company's strategy emphasizes the development of clean energy generation from non- fossil fuel and renewable energy sources to balance the carbon emissions from fossil fuel based generation capacity while contributing towards energy security of the country.

Tata Power currently has four of its renewable projects registered under the Clean Development Mechanism (CDM) program by United Nations Framework Convention on Climate Change (UNFCCC). These projects include 50.4 MW Wind project at Gadag, 50.4 MW Wind project at Khandke and 504 MW Wind project at Samana in Maharashtra.- The fourth project is the 25 MW Solar project at Mithapur, Gujarat.

On a consolidated basis, Tata Power reported a net loss of Rs 114.70 crore in Q1 June 2013 compared with a net profit of Rs 145.93 crore in Q1 June 2012. The company reported a net loss due to higher forex loss on realignment of liabilities due to weakening of rupee and higher financing costs related to Mundra project. Total income jumped 24.54% to Rs 9111.57 crore in Q1 June 2013 over Q1 June 2012.

Tata Power is India's largest integrated power company with a significant international presence.

Powered by Capital Market - Live News