Rs 13,556 Crore Order Book: TATA-Group Power Company Signs Landmark MoU with Assam Government

The company has a market cap of over Rs 1 lakh crore and the stock gave multibagger returns of 600 per cent in 5 years.

Tata Power Company Ltd has solidified its commitment to Assam's renewable energy future by signing a significant Memorandum of Understanding (MoU) at Advantage Assam 2.0. This agreement with the Assam Government outlines a plan to invest Rs 30,000 crore over the next five years, supporting up to 5000 MW of renewable and clean energy projects, including solar, wind, hydro, and energy storage. The MoU, signed by key government and Tata Power officials, demonstrates a collaborative effort to leverage Assam's renewable potential and contribute to its sustainable development goals.  

The partnership involves the Assam Government facilitating the allocation of approximately 20,000 acres of land for these projects, aiding in infrastructure development for transmission connectivity, and promoting Renewable Energy Parks. The government will also support the establishment of Group Captive sites for industries and tea gardens, streamline approvals through single-window clearances, offer financial incentives, and foster innovation through research collaborations. Furthermore, skill development programs will be implemented to ensure a skilled workforce for project execution and operation. This comprehensive approach underscores the government's commitment to creating an enabling environment for renewable energy growth.  

In addition to the primary MoU, Tata Power Renewable Energy Limited has also partnered with Assam Power Distribution Company Limited (APDCL) to expand rooftop solar projects under the Pradhan Mantri Surya Ghar Muft Bijli Yojana (PMSGY) and enhance energy efficiency. These initiatives are expected to create 3,000 direct job opportunities, boosting both the state's economy and its clean energy transition. Tata Power's existing presence in Assam, with 20 MW of solar rooftop capacity and EV charging infrastructure, further demonstrates its active role in driving sustainable energy solutions, aligning with India's net-zero ambitions and showcasing its dedication to transforming the nation's energy landscape.  

About the Company

Tata Power, a leading integrated power company under India's largest conglomerate Tata Group, boasts a diverse portfolio of 14,707 MW spanning the entire power spectrum. This includes the generation of both renewable and conventional energy, along with transmission, distribution, trading, storage solutions and even solar cell and module manufacturing. As champions for clean energy, they've committed to achieving carbon neutrality before 2045. Beyond generation, Tata Power has established India's most comprehensive clean energy platform, offering rooftop solar solutions, microgrids, storage solutions, EV charging stations and home automation systems.

According to Quarterly Results, the net sales increased by 5 per cent to Rs 15,391.06 crore and net profit increased by 23 per cent to Rs 1,001.36 crore in Q3FY25 compared to Q3FY24. In its nine-month results, the net sales increased by 6 per cent to Rs 48,383 crore and net profit increased by 15 per cent to Rs 2,758 crore in 9MFY25 compared to 9MFY24. Looking at its annual results, the net sales increased by 12 per cent to Rs 61,449 crore and net profit increased by 408 per cent to Rs 3,103 crore in FY24 compared to FY23.

With a robust order book of Rs 13,556 crore as of December 31, 2024, Tata Power is poised for an electrifying future. The company has a market cap of over Rs 1 lakh crore and the stock gave multibagger returns of 600 per cent in 5 years. Investors should keep an eye on this mid-cap power stock.

Disclaimer: The article is for informational purposes only and not investment advice.