The announcement was made after market hours yesterday, 2 January 2019.

Meanwhile, the S&P BSE Sensex was down 84.30 points, or 0.23% to 35,807.22.

On the BSE, 44,000 shares were traded in the counter so far compared with average daily volumes of 7.20 lakh shares in the past two weeks. The stock had hit a high of Rs 76.20 and a low of Rs 75.30 so far during the day. The stock hit a 52-week high of Rs 101.75 on 5 January 2018. The stock hit a 52-week low of Rs 59.90 on 9 October 2018.

Maharashtra Electricity Regulatory Commission (MERC) has allowed Brihanmumbai Electric Supply and Transport Undertaking (BEST) to extend its existing power purchase agreement (PPA) with The Tata Power Company (TPC-G) for 677 megawatts (MW) supplied from its Trombay thermal and hydro plants for a period of five years from 1 April 2019 to 31 March 2024.

After the due diligence for ensuring the reliability of supply and cost competitiveness for the BEST consumers in Mumbai, the Commission, in its order on 2 January 2019, approved the extension. The Commission's order came after BEST submitted that the cheapest option before BEST is the extension of its present PPA with Trombay Thermal power station and hydro plants of Tata Power. BEST and Tata Power have agreed for an extension of PPA with existing terms and conditions.

The process of power tie-up was undertaken by BEST in 2017-2018 for its Discom consumers for the period of next five years starting 1 April 2019. The existing power tie-up of 677 MW between BEST and Tata Power is scheduled to expire on 31 March 2019.

This will ensure cheaper power to Mumbai consumers with the added advantage of hydro peaking power at rates which are cheapest in the country. This will also ensure continuity of reliable power supply to Mumbai consumers from embedded Tata Power thermal and hydro generating stations in view of the transmission constraints.

On a consolidated basis, net profit of Tata Power Company rose 85.11% to Rs 393.36 crore on 6.68% rise in net sales to Rs 7332.58 crore in Q2 September 2018 over Q2 September 2017.

Tata Power is India's largest integrated power company and, together with its subsidiaries & jointly controlled entities, has an installed capacity of 10857 MW.