The Torrent Power share price jumped 7% to an intra-day high of Rs 1,311.90 on the National Stock Exchange. The surge in the stock price was on the back of the company receiving LoA for a 1,600 MW coal-based thermal power plant in Madhya Pradesh. 

Torrent Power project costs Rs 22,000 crore

The project will cost around Rs 22,000 crore and will be developed as a greenfield 2×800 MW ultra-supercritical power plant. Ultra-Supercritical technology is a highly efficient and results in significantly lower carbon emissions compared to conventional power plants. This marks the Torrent Group’s single largest investment in the power sector, stated a regulatory filing. 

The LoA indicates a tariff of 5.829 Rs/kWh for Torrent Power.

Coal to be arranged by MPPCL

The requisite coal for the power plant will be arranged by MPPMCL under the SHAKTI Policy of the Ministry of Coal. The Project is likely to be commissioned within 72 months from the date of execution of the Power Purchase Agreement (PPA). 

The project will be developed under the Design, Build, Finance, Own and Operate (DBFOO) model. 

‘With the addition of this capacity, Torrent Power will have a total locked-in generation and pump storage capacity of 9.6 GWp and 3 GW respectively; comprising of installed generation capacity of 4.9 GWp and an under-development capacity of 3.1 GWp of renewable projects, 1.6 GW of Thermal capacity and 3 GW of pumped storage capacity,” read the exchange filing. 

Torrent Power stock performance

The share price of Torrent Power has fallen 1.7% in the last five trading sessions. The stock has declined over 3% in the past one month and 1.5% in the last six months. Torrent Power’s share price has corrected by almost 30% in the past one year.