Shares in Tata Power jumped over 4 per cent to Rs. 94.6 on Monday as the Maharashtra Electricity Regulatory Commission (MERC) has granted a 25-year distribution licence to Tata Power for supplying power in city and suburban areas.
Under this licence Tata Power Company (TPC) will supply electricity in Mumbai city, parts of suburban areas including Bandra to Dahisar in Western suburbs; Chunabhatti to Vikhroli and Mankhurd in Eastern suburbs.
Tata Power has also been granted licence to supply electricity in areas of Mira-Bhayander Municipal Corporation, Chene and Versova which were earlier not a part of its licence area.
Tata Power in a statement said that the company is aggressively expanding its network in Mumbai to offer switchover so that consumers can have reduced tariffs.