Tata Power signs deal with Asian Development Bank for $4.25 bn; stock up

The rise in Tata Power share came after the company announced that it has entered into a memorandum of understanding (MoU) with ADB for $4.25 billion to finance key clean energy power projects

Tata Power share price: Electric power distribution company Tata Power share price inched up to 2.01 per cent to hit an intraday high of Rs 416.70 per share on Friday, November 22, 2024.

 

The rise in Tata Power share came after the company announced that it has entered into a memorandum of understanding (MoU) with Asian Development Bank (ADB) for $4.25 billion to finance key clean energy power projects.

 

“Tata Power, one of India’s leading integrated power companies, and the Asian Development Bank (ADB) have signed a Memorandum of Understanding (MoU) coinciding with the ongoing Climate Conference (COP29) at Baku, Azerbaijan, to evaluate financing for its several strategic projects aimed at enhancing India’s power infrastructure and promoting renewable and clean energy,” Tata Power said in a regulatory filing. 

 

 

Tata Power said that it has signed a MoU to explore financing options for critical ongoing and upcoming projects, including the 966 MW Solar-Wind Hybrid Project, a Pumped Hydro Storage Project, and other initiatives focused on energy transition, decarbonization, and battery storage. 

 

Additionally, the MoU aims to facilitate funding for capital expenditures to enhance the distribution networks under Tata Power's management.

 

Dr. Praveer Sinha, CEO & managing director of Tata Power, said, “Our collaboration with the Asian Development Bank is a crucial step as we explore innovative financing solutions to drive transformative power sector projects. This MoU reinforces our commitment to advancing India's clean and renewable energy capacity and modernising our power infrastructure, ensuring sustainable and inclusive growth. These initiatives align with India’s ambitious clean energy goals, contributing to energy security and environmental resilience.” 

 

The collaboration marks a major step as India progresses toward its ambitious renewable energy target of 500 GW by 2030. 

 

Projects under consideration, such as large-scale solar-wind hybrid systems and advanced hydro storage technologies, represent substantial investments in India’s clean energy infrastructure, Tata Power said. The company is committed to bolstering the nation’s renewable energy capacity, reducing reliance on fossil fuels, and paving the way for a sustainable and energy-secure future, it added.

 

Tata Power Company Limited, a leading integrated power company and a part of the Tata Group, India's largest multinational business conglomerate, owns a diversified portfolio of 15.2GW. 

 

The portfolio spans the entire power value chain, from renewable and conventional energy generation to transmission, distribution, trading, storage solutions, and solar cell and module manufacturing. 

 

As a pioneer in India's clean energy transition, Tata Power has 6.4GW of clean energy generation, constituting 42 per cent of its total capacity. 

 

Committed to achieving carbon neutrality before 2045, Tata Power has successfully partnered with public and private entities across India's generation, transmission, and distribution sectors, serving approximately 12.5 million customers nationwide.

 

The market capitalisation of Tata Power is Rs 1,31,008.92 crore, according to BSE. The company falls under the BSE 100 category. 

 

At 10:00 AM, Tata Power shares were trading 0.38 per cent higher at Rs 410 per share. In comparison, BSE Sensex was trading 0.54 per cent higher at 77,575.35 levels.