Torrent Power on Monday said it has entered into a definitive agreement with L&T Power Development Ltd (L&TPDL), a wholly-owned subsidiary of Larsen & Toubro (L&T), to acquire 100 per cent of equity stake and convertible instruments in Nabha Power Ltd (NPL) for an enterprise value of ₹6,889 crore.
The company said in a statement that the plant has long-term fuel supply agreements with SECL and NCL for 2.775 million metric tonnes and 2.464 million metric tonnes, respectively, along with mechanisms for alternate coal procurement. The equipment is designed to blend domestic and imported coal, enabling operational and fuel flexibility.
“This addition provides a robust platform to enhance scale, improve operational efficiency, and strengthen cash-flow stability. The transaction expands our footprint without introducing development or execution risk and further enhances portfolio diversification while remaining firmly aligned with our disciplined approach to growth, prudent capital allocation, and balance-sheet resilience,” said Samir Mehta, chairman, Torrent Power.
Nabha Power owns and operates a 1,400 MW supercritical coal-fired thermal power plant at Rajpura in Patiala district, Punjab. Commissioned in 2014, the plant operates under a 25-year power purchase agreement awarded under case-II competitive bidding guidelines of the Government of India.
The asset is fully contracted and reported revenue of ₹4,866 crore and adjusted EBITDA of ₹1,153 crore in FY25. The plant maintains sustained availability levels above 90 per cent and achieved a highest-ever plant availability factor of 95.36 per cent in FY25. It also recorded a plant load factor of 94.33 per cent in July 2024, ranking second among all thermal power plants above 500 MW in India.
“The divestment of NPL aligns with L&T’s strategic objective of unlocking value to strengthen our robust core businesses. This move positions us to create long term value for all our stakeholders — business partners, shareholders and employees,” said S N Subrahmanyan, chairman and managing director, L&T.
Torrent Power added that upon completion of the acquisition, its operational capacity will increase from about 5 GW to 6.4 GW. The acquisition also provides access to NPL’s institutional expertise and technical capabilities developed over a decade of operations.
