Mumbai’s BEST Extends Power Pact With Tata Power Company
The Maharashtra Electricity Regulatory Commission allowed BEST to extend its existing 667-megawatt power purchase pact with Tata Power Company Ltd. for five years until March 2024.
“Power will be supplied from the company’s Trombay thermal and hydro plants,” the power generator said in a statement on the exchanges. This removed the overhang on the Mumbai-based power generation assets of Tata Power.
Shares of Tata Power rose nearly 2 percent intra-day after the announcement. The stock, however, pared all its gains to close down 0.94 percent on the bourses.
Praveer Sinha, managing director and chief executive officer of the Tata group company, said the tariff will be determined by the regulator based on the input cost of power. “The tariff hike, which takes place on an annual basis, will have a short-term impact and will stabilise further,” he told BloombergQuint in an interaction.
Analysts attributed Rs 12-14 apiece value to Tata Power’s Mumbai generation assets.
Watch the full interaction with the management here: