Tata Power on Friday said its wholly owned arm has bagged a contract to develop a 100MW solar project in Maharashtra.

“Tata Power Renewable Energy Limited (TPREL) has received a letter of award from Maharashtra State Electricity Distribution Co Ltd (MSEDCL) to develop a 100MW solar project in Maharashtra,” the company said in a filing to the BSE.

The energy will be supplied to MSEDCL under a power purchase agreement, valid for a period of 25 years from the scheduled commercial operation date.

The project is required to be commissioned within 18 months from the date of execution of the power purchase agreement.

“With this award, the cumulative capacity of renewables will be 3,557MW,” Tata Power CEO and MD Praveer Sinha said.

The plant is expected to generate about 240 million units of energy per year and will annually offset around 240 million kg of carbon-dioxide.

Tata Power’s renewable capacity will increase to 3,557MW, of which 2,637MW is operational and 920MW is under implementation, including 100MW won under this letter of award, the company said.

The renewable units are located in various states, including Maharashtra, Gujarat, Madhya Pradesh, Andhra Pradesh, Telangana, Punjab, Bihar, Tamil Nadu, Karnataka and Rajasthan.

Shares of Tata Power closed at Rs 43.25 apiece on the BSE, up 0.82 per cent from their previous close.