Tata Power share price rises 2% on inking $4.25 billion deal with ADB Bank

Stock market today: Tata Power's stock gained 1.7 per cent in trade on Friday, November 22 after the company announced a landmark partnership with the Asian Development Bank (ADB). The two organizations signed a Memorandum of Understanding (MoU) to evaluate financing worth $4.25 billion for clean energy and infrastructure projects, the Tata Group company informed in an exchange filing on November 21. The announcement was made during the COP29 Climate Conference in Baku, Azerbaijan.

Tata Power share price was trading in the green, up 0.62 per cent at ₹411 at 10:45 am on the BSE today. The company enjoys a market capitalisation of ₹1,31,328.46 crore. Tata Power stock price last hit a 52-week high of ₹494.85 on September 27, 2024.

The deal focuses on projects aimed at boosting India's renewable energy capacity. These include a 966 MW solar-wind hybrid system, a pumped hydro storage project, and upgrades to Tata Power's distribution network.

Management comment

Praveer Sinha, CEO and MD of Tata Power highlighted the importance of the collaboration, saying, “Our partnership with ADB is crucial for driving transformative energy projects. This MoU strengthens our commitment to clean energy and sustainable growth.”

The projects also align with India's target of achieving 500 GW of renewable energy by 2030. This initiative is part of Tata Power's broader strategy to decarbonize operations and promote energy security. As of now, clean energy constitutes 42% of Tata Power's portfolio, with plans to become carbon-neutral by 2045.

Suzanne Gaboury, ADB's Director General for Private Sector Operations, emphasised the bank's commitment to sustainability. "Our engagement with Tata Power reflects a shared vision for a low-carbon and climate-resilient future," she stated.

The MoU also includes a focus on gender inclusion, empowering women through green jobs and technologies. This move underscores the integration of social and environmental goals in India's energy transition.

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