Rs 15,900 crore order book: TATA-Group Solar & Wind Power Company Signs MoU with Asian Development Bank for USD 4.25 Billion
The stock is up by 55 per cent from its 52-week low of Rs 256.95 per share and gave multibagger returns of over 500 per cent in 5 years.
Tata Power, a prominent player in India's power sector, has joined forces with the Asian Development Bank (ADB) to explore financing opportunities for key projects aimed at bolstering India's energy infrastructure and accelerating its transition to clean energy. This strategic partnership, formalized through a Memorandum of Understanding (MoU) signed during the COP29 Climate Conference in Baku, Azerbaijan, targets a total project cost of approximately USD 4.25 billion.
The MoU focuses on several critical projects, including the 966 MW Solar Wind Hybrid project and the Pumped Hydro Storage Project. Additionally, it encompasses other initiatives related to energy transition, decarbonization, battery storage, and the expansion of Tata Power's distribution networks. This collaboration extends beyond financial support, as both parties are committed to fostering resilience, inclusivity, and gender equality in the deployment of green technologies and the creation of green jobs. By empowering women as agents of change, this partnership aims to accelerate India's progress towards its ambitious renewable energy target of 500 GW by 2030.
This strategic alliance between Tata Power and ADB marks a significant step forward in India's efforts to build a sustainable and energy-secure future. Through investments in large-scale renewable energy projects and advanced energy storage solutions, India can reduce its reliance on fossil fuels and mitigate the impacts of climate change. This collaboration not only aligns with global climate action goals but also addresses India's unique energy challenges. By enhancing energy access, promoting resilience, and reducing the country's environmental footprint, Tata Power and ADB are poised to drive sustainable progress and shape a greener future for India.
Earlier, Tata Power Company Ltd as formed a strategic partnership with Druk Green Power Corporation (DGPC) of Bhutan to develop at least 5,000 MW of clean energy, including hydropower and solar projects. This collaboration aligns with Bhutan's vision of expanding its energy generation capacity to 25,000 MW by 2040 and diversifying its energy sources. This partnership marks a significant milestone in regional energy security and the clean energy transition, leveraging the strengths of both companies and the supportive policies of the two governments.
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About Tata Power Company Ltd
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.
Tata Power Company Ltd reported its 20th consecutive quarterly PAT growth. During the quarter that ended September 30, 2024, the Company reported its highest-ever PAT before exceptional items of Rs 1,533 crore, up 51 per cent YoY. Consolidated EBITDA during the quarter rose 23 per cent to Rs 3,808 Crore on the back of ramped-up solar manufacturing, favorable regulatory development in distribution and operational efficiency across businesses. For the H1FY25 period, the company clocked its highest-ever Revenue, EBITDA, and PAT before exceptional items at Rs 32,057 crore, Rs 7,158 crore, and Rs 2,721 Crore, respectively. Looking at its annual results, the net sales increased by 10 per cent to Rs 61,542 crore and net profit increased by 12 per cent to Rs 4,280 crore in FY24 compared to FY23.
With a robust order book of Rs 15,900 crore as of September 30, 2024, Tata Power is poised for an electrifying future. The company has a market cap of over Rs 1.20 lakh crore. The stock is up by 55 per cent from its 52-week low of Rs 256.95 per share and gave multibagger returns of over 500 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.