Tata Power NHPC rooftop solar

Tata Power’s Arm Pacts with NHPC to Install Rooftop Solar on Government Buildings

Tata Power Renewable Energy Ltd (TPREL), a subsidiary of Tata Power Company Ltd, has signed a Memorandum of Understanding (MoU) with NHPC Renewable Energy Ltd (NHPC-REL) to install rooftop solar projects on government buildings. This initiative aims to solarize all government-owned buildings by December 2025 under the ambitious PM Surya Ghar Yojna Scheme.

Key Points

1. MoU Signing:
   • TPREL and NHPC-REL have entered into an MoU to drive the installation of rooftop solar projects across buildings owned by Central ministries, states, and Union Territories.
   • NHPC Ltd, appointed by the Ministry of New and Renewable Energy (MNRE), will implement the scheme through its wholly-owned subsidiary, NHPC-REL.
2. Objective:
   • The goal is to achieve 100% solarisation of government buildings by December 2025.
   • This initiative is part of the broader PM Surya Ghar Yojna Scheme, which focuses on harnessing rooftop spaces for solar energy to foster a cleaner and greener future.

1. Statements:
   • Deepesh Nanda, CEO & MD of Tata Power Renewable, expressed excitement about the collaboration, highlighting its significance in achieving a sustainable and green energy future.
2. Stock Performance:
   • Tata Power shares were trading 1.29% lower at Rs 431.25 on the day of the announcement.
   • Despite the dip, the stock has risen 30.78% on a year-to-date (YTD) basis.
   • The stock was trading below the 5-day, 10-day, 20-day, 30-day, and 50-day simple moving averages (SMAs) but above the 100-day, 150-day, and 200-day SMAs.
   • The 14-day relative strength index (RSI) stood at 35.09, indicating it is approaching oversold territory.
   • The stock’s price-to-equity (P/E) ratio is 52.16, with a price-to-book (P/B) value of 8.84.
   • Earnings per share (EPS) are 8.38, with a return on equity (RoE) of 16.95%.

Conclusion

The partnership between Tata Power Renewable Energy Ltd and NHPC Renewable Energy Ltd marks a significant step towards achieving India’s renewable energy goals. By targeting the complete solarisation of government buildings, this initiative aligns with the nation’s vision of a sustainable and green future. Despite the temporary dip in Tata Power’s stock, the long-term prospects remain strong, given the company’s commitment to expanding its renewable energy footprint.

FAQs

1. What is the objective of the MoU between TPREL and NHPC-REL?
   • The objective is to install rooftop solar projects on government buildings, aiming for 100% solarisation by December 2025.
2. What is the PM Surya Ghar Yojna Scheme?
   • It is an ambitious scheme focusing on harnessing rooftop spaces on government buildings for solar energy to foster a cleaner and greener future.
3. Who is implementing the rooftop solar projects?
   • NHPC Ltd, appointed by the Ministry of New and Renewable Energy (MNRE), will implement the projects through its subsidiary, NHPC-REL.
4. What did Tata Power’s CEO say about the initiative?
   • Deepesh Nanda, CEO & MD of Tata Power Renewable, expressed excitement about the collaboration, emphasizing its importance in achieving a sustainable and green energy future.
5. How has Tata Power’s stock performed recently?
   • Tata Power’s stock was down 1.29% at Rs 431.25 on the day of the announcement but has risen 30.78% on a year-to-date basis.
6. What are the stock’s key metrics?
   • The stock’s P/E ratio is 52.16, P/B value is 8.84, EPS is 8.38, and RoE is 16.95%. The 14-day RSI is 35.09.
7. Why did Tata Power’s stock decline despite the positive news?
   • Stock prices can be influenced by various factors, including market sentiment and short-term fluctuations. Despite the temporary dip, the long-term outlook remains positive due to the company’s renewable energy initiatives.
8. What is the significance of the 14-day RSI?
   • The 14-day relative strength index (RSI) of 35.09 suggests that the stock is approaching oversold territory, indicating potential for a rebound.
9. What are the SMAs, and how do they affect the stock’s outlook?
   • Simple Moving Averages (SMAs) are used to analyze stock trends. Tata Power’s stock trading below shorter-term SMAs but above longer-term SMAs suggests mixed sentiment, with potential support from longer-term trends.
10. What is the long-term outlook for Tata Power?
    • The long-term outlook is strong, given the company’s commitment to expanding its renewable energy footprint and the positive impact of initiatives like the rooftop solar projects on government buildings.

Tata Power NHPC rooftop solar

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