Larsen & Toubro (L&T) announced that L&T Power Development Ltd (LTPDL), its wholly-owned subsidiary, has agreed to sell 100% of equity and convertible instruments in Nabha Power Ltd (NPL) to Torrent Power Ltd, a leading player in the Indian power sector. The transaction is subject to requisite regulatory approvals.
Nabha Power Ltd is a wholly-owned subsidiary of LTPDL. Given NPL’s long-term power purchase agreement and stable operating performance, the divestment is positioned as a value-driven monetisation exercise. The transaction aligns with L&T’s broader strategy to exit the development projects business.
Commenting on the development, S N Subrahmanyan, Chairman & Managing Director – L&T, stated that the divestment of NPL supports L&T’s strategic objective of unlocking value to strengthen its robust core businesses and positions the company to create long-term value for stakeholders, including business partners, shareholders, and employees.
Samir Mehta, Chairman – Torrent Power Ltd, 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. The acquisition will be value accretive from day one, delivering a meaningful uplift in the overall revenues and profitability. Leveraging our proven expertise in managing power assets, this addition provides a robust platform to enhance scale, improve operational efficiency, and strengthen cash-flow stability. Importantly, the transaction expands our footprint without introducing development or execution risk and further enhances portfolio diversification while remaining firmly aligned with our disciplined approach to growth, prudent capital allocation, and balance-sheet resilience”.
Nabha Power Ltd (NPL), a wholly-owned subsidiary of LTPDL, owns and operates a 1,400 MW (2 X 700 MW) supercritical coal-fired thermal power plant at Rajpura in Patiala district, Punjab.
Commissioned in 2014, the plant was established under the Case II Competitive Bidding Guidelines of the Government of India and operates under a 25-year Power Purchase Agreement.
The plant has long-term Fuel Supply Agreements (FSA) with SECL and NCL for 2.775 million MT and 2.464 million MT, respectively. It also has mechanisms for alternate coal procurement to address potential supply shortfalls. The equipment is designed to blend domestic and imported coal, ensuring operational and fuel flexibility.
The power plant has demonstrated a strong operational and sustainability track record. It achieved its highest-ever Plant Availability Factor (PAF) of 95.36% in FY25 and recorded a Plant Load Factor (PLF) of 94.33% in July 2024, ranking second among all thermal power plants (>500 MW) in India.
Larsen & Toubro is a USD 30 billion Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing, and Services, with operations across multiple geographies. Its customer-focused approach and emphasis on quality have enabled L&T to attain and sustain leadership in its key lines of business for over eight decades.
Torrent Power Ltd is one of the largest private power sector players in India and ranks among the best-run power utilities in the country, supported by highly efficient generation assets. It is one of the few fully integrated power companies in India, spanning the entire value chain of power generation, transmission, and distribution. This integrated presence enables operational synergies, efficient execution, and stability for sustained and focused growth.
