Tata Power, an integrated power company, announced that TP Saurya, the wholly owned subsidiary of The Tata Power Company, has signed a Power Purchase Agreement with Tata Steel (TSL) to develop a 15 MW solar project at Jamshedpur, Jharkhand.

The energy will be supplied to TSL under a Power Purchase Agreement (PPA) valid for a period of 25 years from scheduled commercial operation date. The project is required to be commissioned within 6 months from the date of execution of the PPA.

The Plant is expected to generate an average of 32 MUs of energy per year and will annually offset approximately average 25.8 million Kg of CO2.

Tata Power's renewable capacity will increase to 4,047 MW, out of which 2,687 MW is operational and 1,360 MW is under implementation including 15 MW won under this PPA.

Speaking on this achievement, Praveer Sinha, CEO & MD, Tata Power, said, "We are glad to collaborate with Tata Steel to reduce their carbon footprint and reaffirm the Tata Group’s commitment for sustainability.Presently the association is limited to Tata Steel at Jamshedpur and we look forward to working closely with them for covering all their other plants across India."

 Shares of the company gained Rs 4.85, or 4.83%, to settle  at  Rs 105.25.  The total volume of shares traded  was  6,809,668 at  the BSE (Wednesday).