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Tata Power gains after commissioning solar farm in Maharashtra

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Last Updated : Jun 03 2014 | 12:02 AM IST

Tata Power rose 2.07% to Rs 106 at 15:20 IST on BSE after the company said it commissioned its second 25 megawatts solar farm in Palaswadi, Maharashtra.

The company made the announcement during trading hours today, 2 June 2014.

Meanwhile, the BSE Sensex was up 460.18 points, or 1.90%, to 24,677.52.

On BSE, so far 8.93 lakh shares were traded in the counter, compared with an average volume of 9.05 lakh shares in the past one quarter.

The stock hit a high of Rs 106.55 and a low of Rs 102.85 so far during the day. The stock hit a 52-week high of Rs 109.45 on 26 May 2014. The stock hit a 52-week low of Rs 65.86 on 6 August 2013.

The stock had outperformed the market over the past one month till 30 May 2014, rising 33.06% compared with 8.03% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 36.48% as against Sensex's 14.66% rise.

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The large-cap company has an equity capital of Rs 270.53 crore. Face value per share is Re 1.

Tata Power, India's largest private power company, which has developed a 25 MW (28.8 MWp) solar photovoltaic (PV) power project, through its subsidiary, Tata Power Renewable Energy (TPREL), announced the formal successful commissioning of its project on 31st May 2014. The project was ready during last week of March but could not be connected to state grid due to non availability of shutdown in existing lines and substations, Tata Power said in a statement.

The solar plant, spread over 130 Acres, is located at Palaswadi village in Maan taluka in Satara district in Maharashtra. The solar plant uses Crystalline Silicon Photo-Voltaic Technology. The solar plant is expected to generate approximately 46 MU per year which will enable Tata Power meet its Solar Renewable Purchase Obligations (RPO). This plant is one of the largest of its kind by a private power utility in the State and the power is evacuated through the State transmission network, the company said.

The Maan taluka is a water-scarce drought-prone region in Maharashtra. The company has already initiated the construction of check dams which will harness the rain water and make it available for irrigation and other uses that will benefit the local community, the added.

Speaking on the commissioning, Mr. Anil Sardana, Managing Director, Tata Power, said, "We are delighted to announce the commissioning of yet another large solar project of 25 MW. We would like to thank the Government of Maharashtra, Maharashtra State Electricity Transmission Company, Maharashtra State Electricity Distribution Company, the local community and authorities and all our stakeholders for the support extended in setting up this solar power project at Palaswadi."

The project with an overall cost of approximately Rs 250 crore is being funded through debt & equity components. TPREL had successfully tied up the entire debt requirement through IDFC in February this year. The signing of financing agreements was completed on 24th February 2014. TPREL complied with the pre disbursement conditions under the financing agreements and received the first loan disbursement on 28th February 2014, Tata Power said.

The company said its strategy emphasizes the development of clean energy generation from renewable sources to balance the carbon emissions from fossil fuel based generation capacity while contributing towards energy security of the country.

The company said it also has operating solar capacities of 3 MWp at Mulshi in Maharashtra and 25 MWp at Mitahpur in Gujarat, alongwith its first solar power plant of 110 kW, set up in 1996 at Walwhan in Lonavla. With these projects, Tata Power now has a strong portfolio of 56+ MW of Solar and 461 MW of Wind, making it the largest Renewable Utility player in India.

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

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First Published: Jun 02 2014 | 3:22 PM IST

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