Tata Power Shares Gain After Its Subsidiary And SIDBI Join Hands

Shares of Tata Power in trade on Tuesday (August 23, 2022) zoomed by close to 2% to day's high price of Rs. 228.2. On the previous day, the stock closed at Rs. 224.15 per share on the NSE.

The gains in the stock price of electric utilities company are likely triggered after its subsidiary TP Renewable Microgrid Limited and Small Industries Development Bank of India (SIDBI) have joined hands to launch an innovative program that shall see 1000 green energy enterprises established throughout the country.

As per the company's filing with the exchange, "Under the collaboration, SIDBI will provide entrepreneurs a "Go REsponsive, ENterprise incentive (GREENi)" after they complete a TPRMG-organized capacity building activity. Through its PRAYAAS scheme or partner institutions, SIDBI will also assist in credit linkages to facilitate financing (loans) for setting up or expanding the businesses of rural entrepreneurs. To provide these rural businesses with quality, affordable, dependable and clean green energy (Solar/Wind/Bio-Gas), TPRMG will discover suitable entrepreneurs within its existing Microgrid network as well as in new geographies. TPRMG will also provide rural enterprises, green energy solutions, the technical know-how for maximising energy utilisation and conservation. The 'Sustainable is Attainable' program of Tata Power and the Empowering MSMEs campaign of SIDBI, are the driving forces behind this partnership.

"Our partnership with SIDBI is a step toward providing rural enterprises with access to a sustainable energy ecosystem and include them in India's commitment to the widespread use of renewable energy. This innovative program intends to develop skills to enable low-carbon futures for rural entrepreneurs and economies and to assist in Ease of Doing Business in rural parts of the country" said Dr. Praveer Sinha, CEO & MD, Tata Power.

Earlier last week, the company's arm Tata Power Renewable Energy said it garnered Rs. 2000 crore by selling 83.6 million shares to GreenForest New Energies Bidco. The fund raising exercise is largely the part of the Rs. 4000 crore investment plan announced by the company in April this year for green energy push.

The deal shall enable the Tata entity to ramp up its capacity in the segment given the intense competition as big names such as Adani and RIL are also working aggressively on their clean energy portfolios.

In July at the company's AGM, Tata Power's Chairman N Chandrasekaran earmarked an amount of Rs. 75000 crore for next 5 years towards green energy.

Tata Power is a large cap company. The company is in the business of electricity generation, transmission, solar roof manufacturing and EV charging station.