Tata Power on Tuesday said the Maharashtra Electricity Regulatory Commission (MERC) has renewed transmission and distribution license for the next 25 years with effect from Aug. 16, 2014.

The license area covers from Colaba to Mahim, falling under Mumbai City Revenue district, Bandra to Dahisar and Chunabatti to Vikhroli of Mumbai suburban Revenue District, area of Mira Bhayandar Municipal Corporation.

"The license allows Tata Power to continue serving the Mumbai consumers as before in Distribution and Transmission area. The distribution license is granted with a specific condition to get the network roll out approved by the Regulatory Commission.

Tata Power will follow the directions of the Commission as before and grow its network to acquire balanced set of consumers to ensure tariff benefit to low end consumers," it said.

Shares of the company gained Rs 0.75, or 0.82%, to trade at Rs 92.75. The total volume of shares traded was 136,781 at the BSE (10.21 a.m., Tuesday).