Solar-Wind Power Company issued a 300-MW Letter of Award to Purvah Green Power Private Limited; Details Inside
The stock is up by 69 per cent from its 52-week low of Rs 109.70 per share.
The company informed that Noida Power Company Limited (NPCL), a subsidiary of CESC Limited, has issued the Letter of Award to Purvah Green Power Private Limited (Purvah), another subsidiary of CESC Limited. This award follows Purvah's successful response to the Request for Selection document issued by NPCL. The selection process adheres to the "Guidelines for tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Wind Solar Hybrid Project" dated August 21, 2023, issued by the Ministry of Power, Government of India, and subsequent amendments. The Letter of Award pertains to the supply of 300 MW of Wind-Solar Hybrid Power from Purvah to NPCL.
The Letter of Award signifies that Purvah, a domestic entity, has been selected to supply 300 MW of Wind-Solar Hybrid Power to NPCL on a long-term basis. The power purchase agreement to be executed will have a 25-year tenure from the scheduled commencement of the power supply. This project falls under related party transactions as both NPCL and Purvah are subsidiaries of CESC Limited. However, it is crucial to emphasize that the selection of Purvah for this 300 MW Wind-Solar Hybrid Power Project was through a competitive bidding process based on tariffs, ensuring an arm's-length transaction conducted in the ordinary course of business.
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
About the Company
CESC Ltd is a leading Indian electrical utility company with a comprehensive portfolio spanning generation, transmission and distribution. It operates in West Bengal, serving over 3.4 million consumers. CESC owns and operates thermal power plants, including Budge Budge Generating Station and Southern Generating Station, with a combined capacity of 885 MW. Additionally, it has commissioned the Haldia Thermal plant (600 MW) and has a presence in renewable energy through solar power plants in Gujarat and Tamil Nadu. The company's distribution network extends across Kolkata, Greater Noida, Rajasthan and Chandigarh, encompassing EHV, HV and LV lines, substations and distribution stations. CESC also holds a joint venture with Noida Power Company Limited, securing exclusive power distribution rights for the Kolkata and Greater Noida regions.
The company has a market cap of over Rs 24,000 crore and has been maintaining a healthy dividend payout of 44.1 per cent. The stock is up by 69 per cent from its 52-week low of Rs 109.70 per share. Investors should keep an eye on this wind power stock.
Disclaimer: The article is for informational purposes only and not investment advice.