Tata Power signs MoU with Assam govt to develop 5000 MW energy; share price falls

Tata Power

Tata Power share price was trading lower on February 27 despite the company signed MoU with Assam government to develop up to 5000 MW of renewable & clean energy in the state.

At 09:55am, The Tata Power Company was quoting at Rs 347.25, down Rs 3.80, or 1.08 percent, on the BSE.

The renewable and clean energy projects comprising solar, wind, hydro and energy storage in the state with Rs 30,000 crore investment over the next 5 years.

As part of this collaboration, the Assam Government will facilitate the identification and allocation of approximately 20000 acres of encumbrance-free government land on a lease basis and assist in acquiring private land suitable for solar, wind, hydro, and energy storage projects.

Additionally, the state will support infrastructure development to ensure seamless transmission connectivity and promote the establishment of Renewable Energy Parks through state agencies.

Tata Power ‘s subsidiary Tata Power Renewable Energy has signed one more MoU with Assam Power Distribution Company Limited (APDCL) to drive renewable energy adoption and enhance energy efficiency across the state.

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Moody's Ratings has affirmed Tata Power Company's corporate family rating (CFR) of Ba1 and changed the outlook to positive from stable.

The positive outlook is underpinned by TPC's strong financial performance and expectation that the company is likely to maintain its stronger credit metrics with improved operating efficiencies in its regulated businesses and growing renewable generation portfolio," says Zi Zhu, a Moody's Ratings Analyst.

Tata Power declared a consolidated net profit of Rs 1,188 crore for the third quarter of FY24-25, registering an on-year growth of 10 percent over the consolidated profit of Rs 1,076 crore last year.

The consolidated revenue of the Tata Group company increased by 3 percent to Rs 15,793 crore compared to Rs 15,294 crore during the same period last year.