NEW DELHI: Torrent Energy Ltd has entered right into a definitive settlement with L&T Energy Growth Ltd (L&TPDL), a completely owned subsidiary of Larsen & Toubro (L&T), to accumulate a 100% fairness stake and convertible devices in Nabha Energy Ltd (NPL) for an enterprise worth of ₹6,889 crore.
NPL is a completely owned subsidiary of L&TPDL, and the transaction is topic to regulatory approvals and customary closing situations, Gujarat-based Torrent Energy stated in an announcement on Monday.
NPL is a completely contracted thermal energy asset that reported income of ₹4,866 crore in FY25. The corporate operates a 1,400 MW (2×700 MW) supercritical coal-fired energy plant at Rajpura in Punjab’s Patiala district.
“The supercritical plant, constructed on superior Japanese know-how, maintains sustained availability ranges above 90%. Strategically situated in a power-deficit area, the plant additionally helps potential ancillary income streams. Moreover, present infrastructure permits for seamless enlargement of capability, supporting future progress alternatives,” the assertion stated.
Upon completion, Torrent Energy’s operational capability will enhance from 5 GW to six.4 GW.
“As well as, Torrent will acquire NPL’s institutional experience and decade-long technical capabilities, developed by means of distinctive implementation and operational excellence. This acquisition creates helpful synergies that may strengthen Torrent’s greenfield thermal energy improvement technique,” the corporate added.
EY acted because the unique M&A advisor to L&T on the transaction.
“The acquisition marks Torrent’s entry into the high-growth energy market of northern India…The acquisition might be worth accretive from day one, delivering a significant uplift within the total revenues and profitability,” stated Samir Mehta, chairman, Torrent Energy.
S.N. Subrahmanyanchairman and managing director of L&T, stated the divestment aligns with the group’s technique of unlocking worth to strengthen its core companies. “This transfer positions us to create long run worth for all our stakeholders — enterprise companions, shareholders and staff.”
L&T is a $30 billion Indian multinational group with core strengths in venture engineering and development, capital items manufacturing, and technology-led companies, with operations spanning infrastructure, power, defence, heavy engineering, IT and monetary companies throughout home and worldwide markets.
Commissioned in 2014, NPL’s Rajpura plant has long-term gas provide agreements with South Jap Coalfields Ltd (SECL) and Northern Coalfields Ltd (NCL) for two.775 million tonnes and a couple of.464 million tonnes, respectively, together with provisions for alternate coal procurement to deal with provide shortfalls. The plant’s tools is designed to mix home and imported coal, offering operational and gas flexibility.
Torrent Energy at the moment has an put in era capability of 5,039 MWp (megawatt peak), comprising 2,730 MW of gas-based capability, 1,947 MWp of renewable capability and 362 MW of coal-based capability. Renewable tasks of 4 GWp, pumped storage capability of three GW and 1.6 GW of coal-based energy capability are below improvement.
In distribution, the corporate provides practically 31 billion models of electrical energy to about 4.21 million clients throughout Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat; Dadra and Nagar Haveli and Daman and Diu; Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra; and Agra in Uttar Pradesh.
The acquisition comes as India’s energy era capability expands quickly amid rising electrical energy demand.
On Sunday, the ability ministry stated that era corporations have added a document 52.53 GW of capability thus far this monetary yr, surpassing the earlier excessive of about 34 GW in FY25. Of the overall additions, renewable power accounted for 39.65 GW, whereas coal-based capability additions stood at 8.8 GW.
The acquisition additionally coincides with India’s plans so as to add 97 GW of coal-based capability within the close to time period to fulfill rising demand and guarantee grid stability.
India’s complete put in energy capability at the moment stands at about 520 GW, together with 248.54 GW of fossil fuel-based capability and 271.97 GW of non-fossil capability. The federal government goals to realize 500 GW of non-fossil capability by 2030 and net-zero emissions by 2070.