Torrent Power Strengthens Generation Business with 1,400 MW Punjab Plant Buyout

Torrent Power has declared its acquisition of Nabha Power, which is a subsidiary of Larsen & Toubro’s company. According to the company’s statement, the acquisition will be completed at an enterprise value of ₹6,889 crore. According to the company, the acquisition is subject to regulatory approval and other normal closing conditions. Nabha Power Limited, also known as NPL, is a wholly owned subsidiary of L&T Power Development Limited, which is a subsidiary of the infrastructure company L&T.

With the completion of this acquisition, the operational capacity of Torrent Power is expected to rise to 6.4 GW from 5 GW currently. According to Samir Mehta, Chairman of Torrent Group, "The acquisition of NPL will provide us with an existing operating asset with contracted cash flows, along with an excellent track record of operations." He added that the acquisition will significantly enhance revenue and profitability from day one.

S.N. Subrahmanyan, Chairman and Managing Director of N&T, stated that the sale of NPL is in line with the company's strategy to strengthen its core businesses and unlock value, thereby creating long-term value for stakeholders.

Nabha Power's 1,400 MW (2 x 700 MW) supercritical coal-fired thermal power plant, commissioned in 2014, is located in Rajpura, Patiala district, Punjab, and operates under a 25-year Power Purchase Agreement (PPA). The plant also has long-term fuel supply agreements with SECL and NCL, as well as alternative coal procurement arrangements.

According to the company, this supercritical power asset recorded revenue of ₹4,866 crore, adjusted EBITDA of ₹1,153 crore and a plant availability factor of 95.36 per cent in FY2024-25.

Torrent Power, the flagship company of the approximately ₹45,000 crore Torrent Group, is one of the country's leading integrated power utilities with presence across the entire power value chain, including generation, transmission and distribution.