India's largest private sector power producer Tata Power Co Ltd has entered into a share purchase agreement to acquire 100 per cent stake in Ideal Energy Projects that owns a 540 MW of thermal power project in Nagpur district of Maharashtra, as per a stock market disclosure. Financial details of the deal, however, are not disclosed.
The deal is subject to regulatory approvals. Of the 540MW, 270 MW was commissioned in May 2013.
With this acquisition, the total generating capacity of Tata Power will increase to 8,885 MW, taking the company an inch closer to reach its target of 18,000 MW by 2022. The company has projects of about 3,000 MW capacity, which are under various stages of execution.
“We are happy to announce our intent to acquire this project in Maharashtra. This is our constant endeavour to maximise stakeholder value in line with our vision," Anil Sardana, MD and CEO Tata Power, said in the statement.
Ideal Energy has a power purchase agreement with Reliance Power and the raw material is sourced from Coal India and abroad.
This project will help Tata Power service its customers in Maharashtra competitively and also give opportunity to the company to work closely with the local communities in the vicinity to improve their quality of life, the statement said.
The company’s portfolio spread includes thermal (7,647 MW), hydroelectric power (447 MW) and other renewable energy (519 MW).
In this space, Adani group recently agreed to acquire Korba West Power Company from Gautam Thapar-controlled Avantha Power & Infrastructure.
Shares of Tata Power ended at Rs 87.00 a piece, up 1.87 per cent on the BSE in flat Mumbai market.
(Edited by Joby Puthuparampil Johnson)