COMPETITIVE · MARKET STRUCTURE · INDIA
Torrent Power to buy L&T’s 1.4 GW Nabha coal plant
Change
Torrent Power agreed to acquire 100% of Nabha Power (including convertible instruments) from L&T Power Development.
Why it matters
The deal transfers control of Nabha Power’s 1,400 MW supercritical coal-fired plant at Rajpura, Punjab, which operates under a long-term power purchase agreement. For Torrent Power, the acquisition expands its operating base and adds a large thermal unit to its portfolio, with the company stating value accretion from year one. For L&T, the divestiture monetises an operating asset and aligns with its stated exit from the development project business. The ownership change can affect plant-level operating decisions, maintenance scheduling, and interface with PPA counterparties under existing contract terms.
Implications
- • Torrent’s operating capacity increases by 1.4 GW to 6.4 GW
- • Control of a long-term PPA thermal asset shifts from L&T to Torrent
- • L&T reduces exposure to operating power-generation assets
- • Punjab plant O&M and contracting interfaces move under Torrent control
Who is affected
- • Torrent Power management and shareholders
- • L&T Power Development / Larsen & Toubro group
- • Nabha Power plant employees and O&M contractors
- • PPA counterparties and power procurers tied to Nabha Power
Source
Topics
Business & Markets Mergers & Acquisitions Energy & Power Oil & Gas Grid & Utilities