Ahmedabad: Gujarat-based Torrent Power Ltd has signed a definitive agreement with L&T Power Development Ltd (LTPDL), a wholly owned subsidiary of Larsen & Toubro (L&T), to acquire 100% equity and convertible instruments in Nabha Power Ltd (NPL) at an enterprise value of ₹6,889 crore. The deal is subject to regulatory approvals and customary closing conditions.

NPL is a fully contracted thermal power asset that reported revenue of ₹4,866 crore and an adjusted EBITDA of ₹1,153 crore in FY2025. The supercritical plant, built using advanced Japanese technology, maintains availability levels above 90% and is strategically located in a power-deficit region, offering potential for additional revenue streams. Existing infrastructure also allows for future capacity expansion.

Following completion of the acquisition, Torrent Power’s operational capacity is expected to rise from around 5 GW to 6.4 GW. The company will also benefit from NPL’s decade-long operational expertise and technical capabilities, creating synergies that support Torrent’s greenfield thermal power expansion strategy.

Torrent Power Chairman Samir Mehta said the acquisition marks the company’s entry into the fast-growing northern India power market and will add a high-quality, fully contracted operating asset to its portfolio. He noted the deal is expected to enhance revenues, profitability, scale, operational efficiency, and cash-flow stability from the outset, while expanding Torrent’s footprint without development or execution risks.

L&T Chairman and Managing Director S. N. Subrahmanyan said the divestment aligns with the group’s strategy to unlock value and strengthen its core businesses, while delivering long-term benefits to stakeholders, including partners, shareholders, and employees.

Nabha Power owns and operates a 1,400 MW (2×700 MW) supercritical coal-based thermal power plant at Rajpura in Punjab’s Patiala district. Commissioned in 2014 under the Government of India’s Case II competitive bidding framework, the project runs on a 25-year power purchase agreement and has long-term fuel supply tie-ups with SECL and NCL, along with provisions for alternate coal sourcing and the flexibility to blend domestic and imported coal.

The plant has maintained strong operational and sustainability performance, recording a plant availability factor of 95.36% in FY25 and a plant load factor of 94.33% in July 2024, placing it among the top-performing thermal power stations in the country. DeshGujarat