NHPC share price: Why stock price of this government-owned electric utilities company is gaining?

Shares of NHPC rose over three per cent in BSE intraday trade on Thursday, tracking a deal of NHPC Renewable Energy Limited, a wholly owned subsidiary of NHPC, with the Rajasthan Government.  

Shares of NHPC jumped three and half per cent to Rs 35.30 a share on the BSE. The counter has given over 30% return in the past one year. 

NHPC Renewable Energy Limited has signed an MoU with the Government of Rajasthan for development of 10,000 MW Ultra Mega Renewable Energy Power Park. 

"In continuation to our earlier letter of even number dated 09.02.2022, it is to inform that now a Memorandum of Understanding (MoU) has been signed today i. e. 24.08.2022 between Government of Rajasthan (GoR) and NHPC Renewable Energy Limited (NHPC REL) (a wholly owned subsidiary company of NHPC Limited) for Development of Ultra Mega Renewable Energy Power Park in the state of Rajasthan," the company said in regulatory filling on August 24.  

The objectives of MOU are is to provide a framework under which parties may collaborate and cooperate for setting up of 10 GW RE Parks (UMREPP)/ Projects at sites identified inside Rajasthan, by optimum utilization of resources and knowledge base of both Parties. 

The MoU also incorporates developing the RE Park and projects in the areas identified. 

RE Projects to be developed either on EPC or Developer mode by NHPC REL. 

NHPC Ltd is a Mini-Ratna Category-I Enterprise of the Government of India. As per the company, it has an installation base of 7071.2 MW from 24 power stations including two no’s projects in JV mode.