Tata Power, India's largest integrated power company, announced that Tata Power Renewable Energy (TPREL), the company's wholly owned subsidiary, has received a Letter of Award (LoA) from Karnataka Renewable Energy Development (KREDL) to develop 250 MW (50 MW x 5 Nos) of solar projects located in state's Tumkur district at Karnataka.

The projects will be set up at the Pavagada Solar Park in Tumkur district at Karnataka and the energy will be supplied to the State Discoms under a Power Purchase Agreements (PPA), valid for a period of 25 years. The Company has won this capacity in a bid at a tariff of INR 2.85/kWH announced by KREDL during April 2018. The projects will be commissioned within 12 months from the date of signing of the PPA.

Praveer Sinha, CEO & MD, Tata Power, said, ''We are proud to announce that we have been awarded the 250 MW Solar Project in Karnataka, and thankful to the Government of Karnataka and the officials at KREDL for this opportunity. We are delighted to contribute towards the realisation of our country’s commitment towards clean and green energy through solar power generation.''

''We are pleased to announce our win in Karnataka and with this, we continue to demonstrate our strong project development, engineering and execution capabilities. This is an important milestone in our endeavour to generate 35-40 per cent of Tata Power's total generation capacity from clean energy sources. Pavagada Solar Park has provided us a unique opportunity to enhance our generation capacities in the same location and post development we will have the optimisation advantage of operating more than 400 MW AC power from Pavagada. Establishment of solar project in this area will improve the revenue to the Govt. and enables Pavagada to be one of the pioneers in Solar park in the entire country,'' said Ashish Khanna, President-Renewables, Tata Power.

Shares of the company declined Rs 0.75, or 1.02%, to trade at Rs 72.45. The total volume of shares traded was 100,893 at the BSE (12.30 p.m., Wednesday).