Tata Power shares jump 2% after signing $4-billion financing pact with Asian Development Bank

Tata Power shares jumped 2% today to an intraday high of Rs 416.70 on the BSE after the company signed a memorandum of understanding (MoU) with the Asian Development Bank (ADB) during the COP29 climate conference in Baku, Azerbaijan.

The MoU aims to evaluate financing for several projects, with a total estimated cost of $4.25 billion.

The MoU outlines the evaluation of financing for key ongoing projects, such as the 966 MW solar-wind hybrid project, the pumped hydro storage project, and other projects in the pipeline related to energy transition, decarbonization, and battery storage. It also includes ongoing financing for capital expenditures (capex) to strengthen the distribution networks managed by Tata Power.


"This MoU reinforces our commitment to advancing India's clean and renewable energy capacity and modernizing our power infrastructure, ensuring sustainable and inclusive growth. These initiatives align with India’s ambitious clean energy goals, contributing to energy security and environmental resilience," said Praveer Sinha, CEO & MD of Tata Power.

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The company stated that this partnership is pivotal as India accelerates its journey toward achieving its renewable energy target of 500 GW by 2030. The projects under evaluation, such as the large-scale solar-wind hybrid systems and advanced hydro storage solutions, signify an investment in the future of India’s clean energy infrastructure. Through initiatives like these, Tata Power aims to strengthen the nation’s capacity for renewable energy, reduce dependency on fossil fuels, and foster a sustainable, energy-secure future.

ADB Director General for Private Sector Operations Suzanne Gaboury said, “As part of this strategy, our engagement with Tata Power reflects a shared vision for a low-carbon, inclusive, and climate-resilient future, supporting India’s transition toward sustainable energy solutions.”

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On Tuesday, Tata Power's shares closed at Rs 408.4, up 0.1% on the BSE, while the benchmark Sensex declined 0.54%. Its shares have surged 24% in 2024 to date and 84% over the past two years, with the company currently holding a market capitalization of Rs 1,30,513 crore.

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