MUMBAI: Torrent Power is buying L&T’s coal-fired power plant in Punjab in a Rs 6,889-crore enterprise value deal, marking its entry into northern India’s fast-growing power market. The acquisition includes Rs 3,661 crore in upfront cash, while Torrent will also take on Rs 3,228 crore of Nabha Power’s debt.Nabha Power runs a 1,400MW thermal plant in Rajpura, Punjab, and supplies all its electricity to the state’s power corporation under a long-term 25-year power purchase agreement. In FY25, the company reported revenue of Rs 4,422 crore and an operating profit of Rs 1,153 crore.The transaction, which is subject to clearance from the Competition Commission of India, is expected to close by the end of June. Once completed, Torrent Power’s total operational capacity will rise to 6.4GW from 5GW.Torrent Power chairman Samir Mehta said the acquisition signals the company’s entry into the “high-growth power market of northern India”. The deal would be “value accretive from day one”, boosting both revenue and profitability, he added.The acquisition comes as power producers ramp up coal-based capacity to meet India’s rising electricity demand. Built with Japanese technology, Nabha Power is among the country’s top-performing thermal plants. It posted a plant availability factor of 95.4% in FY25 – the second-highest among large thermal power plants in India.Strategically located in a power-deficit region, the plant plays a critical role in meeting demand and also offers scope for additional earnings through ancillary services. For L&T, the divestment is part of a broader strategy. Chairman and MD S N Subrahmanyan said the move aligns with the company’s objective of unlocking value and sharpening focus on its core businesses.
