Shares of Tata Power
rose 2% on the BSE in the afternoon session after the company has received approval from Maharashtra Electricity Regulatory Commission (MERC) approval to supply the power from its Trombay Thermal and Hydro plants.
Maharashtra Electricity Regulatory Commission (MERC) has allowed the Distribution Business of Tata Power, India’s largest integrated power utility to have a Power Purchase Arrangement (PPA) with its generation arm for 700 MW to be supplied from its Trombay Thermal and Hydro plants for a period of five years from April 1, 2019 to March 31, 2024, the company said in the BSE filing.
‘Tata Power has been serving the city of Mumbai for over a century and continues to be committed to supplying the most reliable and competitive power meeting the needs of their consumers” said Praveer Sinha, CEO & Managing Director, Tata Power.
After the due diligence for ensuring the reliability of supply and cost competitiveness for the Tata consumers in Mumbai, the Hon’ble Commission, in its order on March 26, 2019, approved the arrangement.
The process of power tie-up was undertaken by the Distribution Business for its consumers for the period of five years starting April 1, 2019. The existing power tie-up was scheduled to expire on March 31, 2019. This will ensure cheaper power to Mumbai consumers with the added advantage of inexpensive hydro peaking power. This will also ensure continuity of reliable power supply to Mumbai consumers from embedded Tata Power thermal and hydro generating stations, the company added.
Tata Power Company Ltd is currently trading at Rs72.55 up by Rs1.3 or 1.82% from its previous closing of Rs71.25 on the BSE. The scrip opened at Rs72.25 and has touched a high and low of Rs72.80 and Rs71.30 respectively.