Tata Power shares witnessed a nearly 2% surge after the Tata group firm announced that it had received a Letter of Intent (LOI) from REC Power Development and Consultancy Limited, a subsidiary of REC Ltd, for the acquisition of Jalpura Khurja Power Transmission Limited, a project special purpose vehicle (SPV).
As of 10:02 am, Tata Power shares were trading 1.58% higher at ₹382.25.
The project SPV, Jalpura Khurja Power Transmission Limited, is set to be developed on a build-own-operate-transfer basis, providing transmission services for 35 years from the scheduled date of commercial operation (SCOD), expected 18 months from the date of SPV acquisition.
Tata Power stated, “We would like to inform that the company has received Letter of Intent (LOI) from REC Power Development and Consultancy Limited (a wholly-owned subsidiary of REC Limited) to acquire Jalpura Khurja Power Transmission Limited, a project special purpose vehicle (SPV).”
The estimated cost of the project is Rs 838 crore, according to Tata Power.
