Torrent Power to acquire Nabha Power from L&T for ₹6,889 crore
NEW DELHI: Torrent Power Ltd has signed a definitive agreement with L&T Power Development Ltd (L&TPDL), a wholly owned subsidiary of Larsen & Toubro (L&T), to acquire 100% equity stake and convertibles in Nabha Power Ltd (NPL) for an enterprise value of Rs 100,000. ₹6,889 crore.
NPL is a wholly owned subsidiary of L&TPDL and the transaction is subject to regulatory approvals and customary closing conditions, Gujarat-based Torrent Power said in a statement on Monday.
NPL is a fully contracted thermal energy asset with reported income. ₹4,866 crore in FY25. The company operates a 1,400 MW (2×700 MW) supercritical coal-fired power plant at Rajpura in Patiala district of Punjab.
“Built on advanced Japanese technology, the supercritical facility maintains sustainable availability levels of over 90%. Strategically located in an energy-deficient region, the facility also supports potential ancillary revenue streams. Additionally, existing infrastructure allows for seamless expansion of capacity, supporting future growth opportunities,” the statement said.
Once completed, Torrent Power’s operational capacity will increase from 5 GW to 6.4 GW.
“In addition, Torrent will gain NPL’s corporate expertise and decades of technical capabilities developed through exceptional execution and operational excellence. This acquisition will create valuable synergies that will strengthen Torrent’s greenfield thermal energy development strategy,” the company added.
EY acted as L&T’s exclusive M&A advisor on the transaction.
“This acquisition marks Torrent’s entry into the high-growth energy market of north India. This acquisition will add value from day one and deliver a meaningful increase in overall revenues and profitability,” said Samir Mehta, President of Torrent Power.
SN Subrahmanyan, chairman and managing director of L&T, said the divestment is in line with the group’s strategy to create value to strengthen its core businesses. “This move positions us to create long-term value for all our stakeholders – our business partners, shareholders and employees.”
L&T is a $30 billion Indian multinational group with core strengths in project engineering and construction, capital goods manufacturing and technology-driven services, with operations spanning infrastructure, energy, defence, heavy engineering, IT and financial services in domestic and international markets.
Commissioned in 2014, NPL’s Rajpura plant has long-term fuel supply agreements with South Eastern Coalfields Ltd (SECL) and Northern Coalfields Ltd (NCL) of 2.775 million tonnes and 2.464 million tonnes respectively, as well as provisions for alternative coal supply to address supply shortfalls. The facility’s equipment was designed to provide operational and fuel flexibility by blending domestic and imported coal.
Torrent Power currently has an installed generation capacity of 5,039 MWp (megawatt peak), consisting of 2,730 MW of gas-based capacity, 1,947 MWp of renewable capacity and 362 MW of coal-based capacity. 4 GWp of renewable energy, 3 GW of pumped storage capacity and 1.6 GW of coal-based energy capacity projects are under development.
In distribution, the company provides around 31 billion units of electricity to around 4.21 million customers in Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat; Daman and Diu with Dadra and Nagar Haveli; Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra; and Agra in Uttar Pradesh.
The acquisition comes as India’s energy production capacity is rapidly increasing in line with increasing electricity demand.
Generation companies have added a record 52.53 GW of capacity so far this fiscal, surpassing the previous high of around 34 GW in FY25, the power ministry said on Sunday. Of the total additions, 39.65 GW consisted of renewable energy and 8.8 GW consisted of coal-based capacity additions.
This acquisition also dovetails with India’s plans to add 97 GW of coal-fired capacity in the near term to meet growing demand and ensure grid stability.
India’s total installed power capacity currently stands at approximately 520 GW, of which 248.54 GW is fossil fuel-based capacity and 271.97 GW is non-fossil capacity. The government aims to reach 500 GW of non-fossil capacity by 2030 and net zero emissions by 2070.
