Tata Power rose 1.05% to Rs 72 at 13:50 IST on BSE after the company said that MERC has approved 700 MW power purchase arrangement between distribution and generation business of Tata Power for the next five years.
The announcement was made during trading hours today, 27 March 2019.Meanwhile, the S&P BSE Sensex was down 120.92 points, or 0.32% to 38,112.49.
On the BSE, 1.95 lakh shares were traded in the counter so far compared with average daily volumes of 5.54 lakh shares in the past two weeks. The stock had hit a high of Rs 72.80 and a low of Rs 71.30 so far during the day. The stock hit a 52-week high of Rs 89.50 on 2 May 2018. The stock hit a 52-week low of Rs 59.90 on 9 October 2018.
Tata Power Company announced that Maharashtra Electricity Regulatory Commission (MERC) has allowed the distribution business of Tata Power to have a power purchase arrangement (PPA) with its generation arm for 700 megawatts (MW) to be supplied from its Trombay Thermal and Hydro plants for a period of five years from 1 April 2019 to 31 March 2024.
After the due diligence for ensuring the reliability of supply and cost competitiveness for the Tata consumers in Mumbai, the Commission, in its order on 26 March 2019, approved the arrangement.
Earlier in January 2019, the Commission approved the PPA of Tata Power with BEST for 677 MW. The process of power tie-up was undertaken by the distribution business for its consumers for the period of five years starting 1 April 2019. The existing power tie-up was scheduled to expire on 31 March 2019. This will ensure cheaper power to Mumbai consumers with the added advantage of inexpensive hydro peaking power. This will also ensure continuity of reliable power supply to Mumbai consumers from embedded Tata Power thermal and hydro generating stations.
On a consolidated basis, net profit of Tata Power Company dropped 78.56% to Rs 126.68 crore on 21.17% rise in net sales to Rs 7706.71 crore in Q3 December 2018 over Q3 December 2017.
Tata Power is India's largest integrated power company and, together with its subsidiaries & jointly controlled entities, has an installed capacity of 10757 MW.
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