Tata Power Signs Rs 49,000 Crore Renewable Deal with Andhra Pradesh
Tata Power’s shares surged by 3% in early trading on Monday, reaching Rs 361.85 per share, following the announcement of a landmark renewable energy deal with the Andhra Pradesh government. The deal, valued at Rs 49,000 crore, will see the development of up to 7,000 MW of solar, wind, and hybrid energy projects, some of which may include storage solutions. This agreement marks a significant step in Tata Power’s strategy to expand its green energy footprint in India, as the company continues to align with the nation’s clean energy goals.
The deal is a part of Andhra Pradesh’s broader push to become a hub for renewable energy. The state’s Integrated Clean Energy (ICE) Policy aims to attract investments worth Rs 10 lakh crore in renewable projects, underscoring its commitment to a sustainable future. By partnering with the Andhra Pradesh government, Tata Power is positioning itself at the forefront of India’s renewable energy transformation.
Officials from both parties have highlighted the importance of the deal in contributing to India’s energy transition. It is expected that the collaboration will not only bolster the state’s renewable energy capacity but also create significant economic opportunities, including job creation and infrastructure development.
This MoU comes shortly after Tata Power signed a similar agreement with the Assam government in February, involving an investment of Rs 30,000 crore to develop 5,000 MW of renewable energy projects. The company’s strategic focus on solar, wind, and hybrid energy systems is becoming increasingly important as India works towards meeting its renewable energy targets.
Although Tata Power’s stock performance has been somewhat volatile, with a 20% dip over the past six months, its long-term prospects remain strong. Over the past two years, the stock has seen a 67% increase, reflecting investor confidence in the company’s commitment to renewable energy. Analysts are cautiously optimistic, with a target price of Rs 441, suggesting a 26% upside potential.
