Shares of NLC India Ltd surged 3% on Wednesday, 7 May, after the company announced signing a power purchase agreement with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL).

RVUNL and NLC India Renewables Limited (NIRL), a renewable energy division and 100% subsidiary of NLC India, have signed a power purchase agreement (PPA) for the latter’s projected 810 megawatts (MW) solar power plant.

RVUNL awarded the project through a competitive tariff-based bidding process, and it is being constructed under the MNRE’s Ultra Mega Renewable Energy Power Park (UMREPP) Scheme – Mode 8.

According to the terms of the PPA, the project is estimated to create roughly 2 billion units (BU) of green power annually and offset approximately 1.5 million metric tons of CO2 emissions per year, playing an important role in India’s transformation to a low-carbon economy, the business said.

The company said the project will be built on the infrastructure of RVUNL’s 2000 MW Pugal Solar Park.

In other news, the company has signed a Memorandum of Understanding (MoU) with IREL (India) to cooperate and collaborate on the development (mining/excavation/refining, etc.) of mutually agreed-upon critical mineral assets, including REE, by acquiring assets or sourcing raw materials domestically or globally.

In March, the firm board approved external commercial borrowings of up to USD 200 million, with an equivalent green shoe option, and got a Letter of Award from SJVN for a 200 MW wind generation project at Rs 3.74 per kWh.

At 12:28 pm, the shares of NLC India were trading 3.45% higher at Rs 225.25 on NSE.

Wondering About NLC India Ltd? The Analyst Has Answers.

Ready to invest like a pro? Unicorn Signals app equips you with 100+ Free tools and knowledge you need to succeed. Download the Unicorn Signals app and gain access to daily stock lists and insightful market analysis and much more!