Tata Power jumps after subsidiary bags 300 MW project from NTPC

Tata Power surged 5.63% to Rs 31.90 after the company's unit, Tata Power Solar, received the letter of award to build the 300 MW CPSU-II for NTPC at an all-inclusive price of Rs 1,730.16 crore.

Tata Power during market hours today (7 April 2020), said the commercial operation date (COD) for this grid-connected solar photovoltaic project is set for September 2021 (18 months). With this order, the order book of Tata Power Solar stands at approximately Rs 8,541 crore including external and internal orders.

Ashish Khanna, MD & CEO, Tata Power Solar and president, Tata Power (Renewables), said, "Tata Power Solar is proud to consistently win large and challenging grid-based solar EPC contracts from industry-leading public sector undertaking like NTPC. This being a domestic content requirement (DCR) project, we will be building the project with our own cells and modules."

In September 2019, post reverse auction, Tata Power Solar had received a Letter of Award to develop a 105MWp floating solar project worth approximately Rs 343 crore including 3 years operations and management (O&M). This project is one of the most prominent floating solar projects in the country. This venture is executed on the reservoir of NTPC Kayamkulam District in Alappuzha, Kerala and is to be commissioned no later than 21 months.

The counter also witnessed some amount of bargain hunting. The stock fell 8.06% in two sessions to end at Rs 30.20 on Friday, 3 April 2020, from its recent closing high of Rs 32.85 recorded on 31 March 2020.

The company's consolidated net profit rose 26.1% to Rs 178.86 crore despite a 11.4% fall in net sales to Rs 7,071.03 crore in Q3 December 2019 over Q3 December 2018.

Tata Power is an integrated power company and, together with its subsidiaries & jointly controlled entities, has an installed capacity of 10,763 MW. It has a presence across the entire power value chain - generation of renewable as well as conventional power including hydro and thermal energy, transmission & distribution, trading and coal & freight logistics.

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