Shares of Tata Power Company Ltd on Monday gained 3% after the Tata Group firm said its subsidiary, Tata Power Renewable Energy Ltd (TPREL), has inked a memorandum of understanding (MoU) with the government of Andhra Pradesh to collaborate on renewable energy projects in the state.
Tata Power stock gained 3% to Rs 361.85 on BSE. Market cap of the firm rose to Rs 1.14 lakh crore. The stock is neither oversold nor overbought on charts, signals its relative strength index (RSI), which stands at 48.3. In terms of price action, the stock is trading higher than the 5 day, 10 day, 20 day, 30 day but lower than the 50 day, 100 day, 150 day and 200 day moving averages.
Tata Power shares rose 72% in two years. In five years, the stock delivered multibagger returns of 807%. However, the stock has lost 15% in a year and lost 19% in six months.
Under this strategic agreement, TPREL and the government of Andhra Pradesh will jointly explore renewable energy development opportunities of up to 7,000 MW (7 GW), including solar, wind, and hybrid projects with or without storage solutions.
The estimated investment in these projects stands at approximately up to Rs 49,000 crore, making it one of the largest renewable energy investments in the state.
Beyond contributing to Andhra Pradesh’s clean energy targets, the projects will provide a boost to the local economy, foster skill development and support livelihoods, ultimately contributing to the socio-economic growth of the state.
Deepesh Nanda, CEO & Managing Director, TPREL, said, “We are delighted to partner with the Government of Andhra Pradesh in advancing the state’s clean energy journey. By leveraging our expertise and cutting-edge technology, this partnership will drive large-scale renewable adoption and contribute to India’s sustainability goals. Developing upto 7GW of clean energy projects will further strengthen Andhra Pradesh’s position as a renewable energy hub and accelerate its transition towards a low-carbon economy.”