Shares of Tata Power rose sharply by nearly 5% in early trading on March 20, 2026. The stock touched a high of ₹418.45 on the NSE after positive developments related to its power business.
The main reason behind this rise is the approval of a revised power supply agreement by the Gujarat government. This decision allows Tata Power to restart long-term electricity supply from its 4-gigawatt Mundra power plant. The plant had remained shut for about six months after the government removed an emergency rule that earlier supported companies using expensive imported coal.
The reopening of the Mundra plant is seen as a major boost for the company, as it will help restore operations and improve revenue.
Another positive update came from the company’s investment plans. Tata Power recently announced that it will acquire a 40% stake in Dorjilung Hydro Power Limited. As part of this deal, the company has already invested ₹50 crore in the first phase. The total planned investment is around ₹1,572 crore. This move is expected to strengthen its presence in the renewable energy sector.
There is more good news for the company from the government side. The Union Cabinet has approved a small hydro power development scheme worth ₹2,585 crore. This scheme aims to develop 1,500 MW of renewable energy capacity across the country.
Experts believe Tata Power could benefit from this scheme because of its growing focus on clean energy projects. The initiative will support eco-friendly power generation without building large dams or displacing people.
Overall, these developments have increased investor confidence. The combination of restarting operations, new investments, and government support has helped push Tata Power shares higher in the market.
