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(Mumbai, India - January 4, 2024) Reliance Power shares soared 20% to hit a fresh one-year high of ₹30.40 on the Bombay Stock Exchange (BSE) today. The surge came after the company announced that it had signed a memorandum of understanding (MoU) with the National Thermal Power Corporation (NTPC) to jointly develop a 3,000-megawatt (MW) solar power project in Gujarat.
The MoU, which is still subject to regulatory approvals, would see Reliance Power and NTPC each hold a 50% stake in the project. The project is expected to cost ₹30 billion and is scheduled to be commissioned by 2027.
The surge in Reliance Power shares is a sign of investor confidence in the company's renewable energy business. Reliance Power is one of India's largest renewable energy developers, with a portfolio of over 10,000 MW of projects. The company has been aggressively expanding its renewable energy business in recent years, and the MoU with NTPC is a major step forward in this effort.
The MoU with NTPC is also a sign of the growing importance of solar power in India. India is aiming to achieve 450 GW of renewable energy capacity by 2030, and solar power is expected to play a major role in this effort. The MoU with NTPC would help Reliance Power to contribute to India's renewable energy goals.
The surge in Reliance Power shares is a positive development for the company and for the Indian renewable energy industry. It is a sign that investors are optimistic about the future of Reliance Power and about the growth potential of the renewable energy sector in India.