Torrent Power has signed a definitive agreement to acquire 100% stake in Nabha Power Limited from L&T Power Development Limited, a wholly owned subsidiary of Larsen & Toubro.
The transaction, valued at ₹6,889 crore (enterprise value), marks a significant expansion of Torrent Power’s thermal generation portfolio and its strategic entry into northern India’s power market.
Transaction Overview
Under the Securities Purchase Agreement, Torrent Power will acquire the entire equity stake along with convertible instruments in Nabha Power Limited. The deal is subject to regulatory approvals and customary closing conditions.
| Particulars | Details |
| Enterprise Value | ₹6,889 crore |
| Stake Acquired | 100% equity & convertible instruments |
| Asset Type | Fully contracted thermal power plant |
| Installed Capacity | 1,400 MW (2 x 700 MW units) |
Asset Profile & Performance
Nabha Power operates a 1,400 MW supercritical thermal power plant located in Rajpura, Punjab. Commissioned in 2014, the plant functions under a 25-year Power Purchase Agreement awarded through the Government of India’s Case II competitive bidding framework.
FY2025 Financial Performance:
- Revenue: ₹4,866 crore
- Adjusted EBITDA: ₹1,153 crore
Operational Highlights:
- Plant Availability Factor: 95.36% (highest-ever level)
- Plant Load Factor: 94.33% (July 2024 peak)
- Ranked among the top-performing thermal plants above 500 MW in India
The facility maintains sustained availability levels above 90%, reflecting operational efficiency and reliability.
Fuel Security & Operational Stability
The plant benefits from long-term fuel supply agreements with:
- SECL: 2.775 million MT
- NCL: 2.464 million MT
Additionally, provisions for alternate coal sourcing and the ability to blend domestic and imported coal provide flexibility and supply security.
Strategic Significance for Torrent Power
Following completion, Torrent Power’s total operational capacity will increase from approximately 5 GW to 6.4 GW.
Key Strategic Advantages:
- Entry into the northern India power market
- Addition of a fully contracted, cash-flow-generating asset
- Immediate earnings accretion
- Portfolio diversification without development risk
- Potential for future capacity expansion using existing infrastructure
The plant’s location in a power-deficit region also enhances prospects for ancillary revenue opportunities.
Management Commentary
Samir Mehta, Chairman of Torrent Power, stated that the acquisition provides entry into a high-growth regional market while adding a high-quality, operationally proven asset backed by long-term contracted revenues.
S N Subrahmanyam, Chairman & Managing Director of Larsen & Toubro, noted that the divestment aligns with L&T’s broader strategy of unlocking value and strengthening focus on core businesses.
Summary
Torrent Power will acquire 100% of Nabha Power Limited for ₹6,889 crore, adding a 1,400 MW supercritical thermal plant to its portfolio. The deal increases Torrent’s operational capacity to 6.4 GW and marks its strategic expansion into northern India. The asset delivers strong financial performance, high operational efficiency, and long-term contracted cash flows, making the transaction value-accretive from the outset.
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