Shares of Tata Power jumped 4 per cent in early trade on Monday morning after the company declared its successful bid to acquire the Bikaner-III Neemrana-II Transmission renewable energy project for approximately Rs 1,544 crore. This energy project is an SPV established by PFC Consulting Limited, a subsidiary of Power Finance Corporation.
A special purpose vehicle (SPV) or entity (SPE) is a subsidiary created by a parent company to segregate and manage specific financial risks.
It said that the transmission project, which will be developed on a build-own-operate-transfer (BOOT) basis, will enable the evacuation of 7.7 GW of renewable energy from the Bikaner Complex in Rajasthan. The project entails the establishment of a 340-kilometre transmission corridor from the Bikaner-III pooling station to the Neemrana II substation.
Further, as per the filing, upon successful commissioning, the project will become a vital link in the roadmap unveiled by the Ministry of Power in 2022 for integrating over 500 GW of renewable energy capacity into the national grid by 2030.
Since January 2023, shares of Tata Power have gained over 33 per cent against the Nifty 50’s rise of over 12 per cent.
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