Tata Power gains 2% after firm gets LOI for Rs 838 crore REC power transmission project

Tata Power share price NSE: Tata Power shares rose on Monday, February 19, in the first trading session after the Tata group electric utility and electricity generation company said that it had received a letter of intent from REC Power Development and Consultancy to develop the Jalpura Khurja Power Transmission project.

Tata Power shares rose as much as 2.52 per cent to Rs 385.8 apiece on NSE. The counter settled at Rs 381.8, up 1.46 per cent on NSE.

In an exchange filing dated February 16, Tata Power said, "It has received a letter of intent (LoI) from REC Power Development and Consultancy Ltd (RECPDCL) -- a wholly-owned subsidiary of REC Ltd -- to acquire Jalpura Khurja Power Transmission Limited, a project special purpose vehicle".

The estimated cost of the project is Rs 838 crore, Tata Power said.

The project SPV will be developed on a build-own-operate transfer (BOOT) basis to provide transmission service for 35 years from the scheduled date of commercial operation (SCOD), 18 months from the date of SPV acquisition.

RECPDCL, a wholly owned subsidiary of REC Limited, has been acting as a bid process coordinator (BPC) for tariff-based competitive bidding (TBCB) in transmission line projects and RE-bundling projects.

Under the Ministry of Power, REC Limited is a non-banking finance company (NBFC) as well as an infrastructure financing company (IFC).

with PTI inputs

Catch the latest stock market updates here. Catch the latest stock market updates here. For all other news related to business.