Mumbai: Tata Group company Tata Power Monday said it is looking at the possibility of setting up a geothermal power plant and a solar power plant of 5 MW each at a suitable location in Gujarat, a move that will strengthen the renewable energy portfolio of the company.

Tata Power has entered into an agreement in this regard with the Gujarat government “to explore the possibility of setting up a 5 MW geothermal power plant in phase I,” the Tata group company said in a filing to the Bombay Stock Exchange.

“The company also signed an MoU for developing a 5 MW solar power plant in Gujarat,” the filing added.

“We are happy about this strategic partnership with the government of Gujarat. This partnership not only strengthens our renewable portfolio but also creates opportunities to expand our presence in the growing renewable energy market in India,” Tata Power Managing Director Prasad Menon said.

Tata Power is one of the largest integrated private power and energy company with an installed generation capacity of over 2,300 MW and a presence in all the segment of the power sector viz generation (thermal, hydro, solar and wind), transmission, distribution and trading.

Shares of the Tata Power settled at Rs727.40, down 2.80% on the BSE.