Tata Power shares gets major boosts, pacts deal with ADB for $4.25 billion

Tata Power shares were boosted up by 2.01% to hit an intraday high of Rs 416.70 per share on Friday after the company announced that it has entered into a memorandum of understanding (MoU) with Asian Development Bank (ADB) for $4.25 billion to finance key clean energy power projects.

“Tata Power, one of India’s leading integrated power companies, and the Asian Development Bank (ADB) have signed a Memorandum of Understanding (MoU) coinciding with the ongoing Climate Conference (COP29) at Baku, Azerbaijan, to evaluate financing for its several strategic projects aimed at enhancing India’s power infrastructure and promoting renewable and clean energy,” Tata Power said in a regulatory filing. 

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The agreement aims to explore financing options for critical ongoing and upcoming projects, including the 966 MW Solar-Wind Hybrid Project, a Pumped Hydro Storage Project, and other initiatives focused on energy transition, decarbonization, and battery storage. 

Additionally, the MoU aims to facilitate funding for capital expenditures to enhance the distribution networks under Tata Power's management.

Dr. Praveer Sinha, CEO & managing director of Tata Power, said, “Our collaboration with the Asian Development Bank is a crucial step as we explore innovative financing solutions to drive transformative power sector projects. This MoU reinforces our commitment to advancing India's clean and renewable energy capacity and modernizing our power infrastructure, ensuring sustainable and inclusive growth. These initiatives align with India’s ambitious clean energy goals, contributing to energy security and environmental resilience.”  The collaboration marks a major step as India progresses toward its ambitious renewable energy target of 500 GW by 2030. 

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Projects under consideration, such as large-scale solar-wind hybrid systems and advanced hydro storage technologies, represent substantial investments in India’s clean energy infrastructure, Tata Power said. The company is committed to bolstering the nation’s renewable energy capacity, reducing reliance on fossil fuels, and paving the way for a sustainable and energy-secure future, it added.

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