Torrent Power Ltd has signed a definitive agreement to acquire 100% equity stake and convertible instruments of Nabha Power Limited from L&T Power Development Limited for an enterprise value of ₹6,889 crore, marking a major expansion of its thermal generation portfolio in North India. The transaction is subject to regulatory approvals and customary closing conditions.
The acquisition gives Torrent Power ownership of a fully operational, contracted coal-based power asset and strengthens its baseload generation profile amid rising electricity demand.
Nabha Power Limited owns and operates a 1,400 MW (2×700 MW) supercritical coal-fired power plant located at Rajpura in Punjab’s Patiala district. Commissioned in 2014 under the Government of India’s Case II competitive bidding framework, the project operates under a 25-year power purchase agreement, ensuring long-term revenue visibility.
The plant is built using advanced supercritical technology and has demonstrated sustained high operating performance with availability levels above 90%. The site also has supporting infrastructure that allows potential future capacity expansion.
Financial and Operating Performance
According to company disclosures, the asset reported:
● Revenue of ₹4,866 crore in FY2025
● Adjusted EBITDA of ₹1,153 crore
● Plant Availability Factor of 95.36% in FY25
● Plant Load Factor peak of 94.33% in July 2024, ranking among the top-performing large thermal plants in the country
The station is designed for fuel flexibility and can operate on a blend of domestic and imported coal, improving dispatch reliability and cost management.
Long-Term Fuel Linkages in Place
The project has long-term fuel supply agreements with major coal producers for multi-million-tonne annual supplies, along with alternate coal sourcing mechanisms to manage supply gaps. These arrangements reduce fuel risk and support stable long-term operations.
Capacity Impact for Torrent Power
Post-acquisition, Torrent Power’s operational generation capacity will increase from around 5 GW to approximately 6.4 GW. The company said the acquisition will be value accretive from day one, adding stable contracted cash flows and enhancing overall portfolio profitability.
Torrent Power operates as an integrated utility with presence across generation, transmission and distribution, and supplies electricity to over four million customers across multiple licensed and franchise areas in India. Its generation mix includes gas-based, renewable and coal-based assets, with additional renewable and pumped storage projects under development.
Torrent Power’s leadership said the acquisition provides entry into a high-growth northern power market through a best-in-class operating asset with a strong track record and contracted revenues. The company expects operational synergies, improved scale and stronger cash-flow stability without taking on greenfield execution risk.
Leadership at Larsen & Toubro said the divestment aligns with its strategy of unlocking value and sharpening focus on core engineering, infrastructure and technology-led businesses, while creating long-term stakeholder value.
The transaction highlights continued portfolio realignment in India’s power sector, where utilities are selectively adding efficient thermal assets with long-term PPAs while simultaneously expanding renewable and storage capacity. The Nabha acquisition positions Torrent Power with higher baseload scale alongside its ongoing clean energy investments.
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