Torrent Power has signed an agreement with L&T Power Development (LTPDL), a subsidiary of L&T, to buy Nabha Power, which operates a thermal power plant in Punjab, for for Rs. 3,660.87 crore. The deal is happening at an enterprise valuation of Rs 6889 crore, Torrent Power said in an exchange filing.
Torrent Power has entered into an agreement with LTPDL to buy entire equity and convertible instruments in Nabha Power , a subsidiary of LTPDL, which owns and operates a 1,400 MW (2 X 700 MW) supercritical coal-fired thermal power plant at Rajpura in Patiala district, Punjab.
Strategic Expansion
With the acquisition, Torrent’s operational capacity will increase from ~5 GW to 6.4 GW. The acquisition creates valuable synergies that will strengthen Torrent’s greenfield thermal power development strategy, Torrent said in a exchange filing,. It added that Torrent will gain NPL’s institutional expertise and decade-long technical capabilities, developed through exceptional implementation and operational excellence.
Commissioned in 2014, the power plant was set up under Case II competitive bidding guidelines of the central government. It operates under a 25-year power purchase agreement. The plant has long-term fuel supply agreement (FSA) with SECL and NCL for 2.775 million MT and 2.464 million MT, respectively, along with mechanisms for alternate coal procurement to address any supply shortfall.
NPL had revenues of R 4,866 crore and adjusted EBITDA of Rs 1,153 crores in FY 2025. The supercritical plant, built on advanced Japanese technology, maintains sustained availability levels above 90%, Torrent Power said in a exchange filing.
Given NPL’s long-term power purchase agreement and stable operating performance, the divestment is a value-driven monetisation exercise. The transaction is aligned with L&T’s broader strategy to exit the development projects business, L&T said.
Operational Excellence
S N Subrahmanyan, chairman & managing director – L&T, said: “The divestment of NPL aligns with L&T’s strategic objective of unlocking value to strengthen our robust core businesses. This move positions us to create long‑term value for all our stakeholders — business partners, shareholders and employees”.
Samir Mehta, chairman – Torrent Power said: “The acquisition marks Torrent’s entry into the high-growth power market of northern India. Upon completion, NPL will add a high-quality, best-in-class and well-established operating asset to our portfolio supported by fully contracted cash flows and a strong operational track record. “
Mehta said the acquisition will be value accretive from day one, delivering a meaningful uplift in the overall revenues and profitability. Leveraging their expertise in managing power assets, the addition provides a robust platform to enhance scale, improve operational efficiency, and strengthen cash-flow stability. , he said.”
The plant has a plant availability factor (PAF) of 95.36% in FY25 and a PLF of 94.33% in July 2024, ranking second among all thermal power plants (over 500 MW capacity) in the country , L&T said .