Shares of Tata Power Company Limited hit a 52-week high of Rs 286 on 4 December after they successfully acquired Bikaner-III Neemrana-II Transmission renewable energy project for a total consideration of Rs 1,544 crore.

The energy project is a special purpose entity that is established by PFC Consulting Limited, which is a subsidiary of Power Finance Corporation. A special purpose vehicle (SPV) or entity (SPE) is a subsidiary that is created by a parent company to segregate and manage specific financial risks.

The project will be developed on a Build-Own-Operate-Transfer (BOOT) basis and is strategically positioned to enable the evacuation of 7.7 gigawatts of renewable energy from the Bikaner Complex in Rajasthan.

In its filing, the company said, “The project entails the establishment of a 340 kilometres transmission corridor from Bikaner-III pooling station to Neemrana II substation.”

The company will maintain the transmission project for 35 years, while the project is set to be commissioned within 24 months from the date of the transfer of the project’s SPE.

Upon commissioning, the project will play a crucial role in the roadmap outlined by the Ministry of Power in 2022. This plan aims to integrate over 500 gigawatts of renewable energy into the national grid by 2023.

At 12:57 pm, the shares of Tata Power were trading 1.68% higher at Rs 280.65 on NSE.