Torrent Power Limited has entered into a definitive agreement with L&T Power Development Limited, a wholly owned subsidiary of Larsen & Toubro (L&T), to acquire 100% of the equity stake and convertible instruments in Nabha Power Limited (NPL) for an enterprise value of INR 6,889 crores. The transaction is subject to requisite regulatory approvals and customary closing conditions.
NPL, a wholly owned subsidiary of L&T Power Development Limited, is a fully contracted thermal power asset. In FY 2025, NPL reported revenue of INR 4,866 crores and Adjusted EBITDA of INR 1,153 crores. The supercritical plant, built on advanced Japanese technology, has maintained sustained availability levels above 90%. Strategically located in a power-deficit region, the plant also supports potential ancillary revenue streams. Additionally, the existing infrastructure allows for seamless capacity expansion, supporting future growth opportunities.
Upon completion of the acquisition, Torrent Power’s operational capacity will increase from approximately 5 GW to 6.4 GW. Torrent will also gain NPL’s institutional expertise and decade-long technical capabilities developed through exceptional implementation and operational excellence. The acquisition is expected to create synergies that will strengthen Torrent’s greenfield thermal power development strategy.
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. 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.”
S N Subrahmanyan, Chairman & Managing Director, Larsen & Toubro, commented, “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.”
Nabha Power Limited is a wholly owned subsidiary of L&T Power Development Limited. NPL 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 set up under the Case II Competitive Bidding Guidelines of the Government of India and operates under a 25-year Power Purchase Agreement (PPA).
The plant has long-term Fuel Supply Agreements (FSA) with South Eastern Coalfields Limited (SECL) and Northern Coalfields Limited (NCL) for 2.775 million MT and 2.464 million MT, respectively. Mechanisms are also in place for alternate coal procurement to address any supply shortfall. The equipment is designed to blend domestic and imported coal, ensuring operational and fuel flexibility.
NPL has established a strong operational and sustainability track record, highlighted by a highest-ever Plant Availability Factor (PAF) of 95.36% in FY25 and a Plant Load Factor (PLF) of 94.33% in July 2024, ranking second among thermal power plants (>500 MW) in India.
Torrent Power, the ₹29,165 crore integrated power utility of the ₹45,000 crore Torrent Group, is one of India’s largest companies in the power sector, with a presence across the entire power value chain — generation, transmission, and distribution.
The company has an aggregate installed generation capacity of 5,039 MWp, comprising 2,730 MW of gas-based capacity, 1,947 MWp of renewable capacity, and 362 MW of coal-based capacity. Renewable projects of approximately 4.0 GWp, pumped storage capacity of 3 GW, and coal-based power capacity of 1.6 GW are currently under development. Total generation and pumped storage capacity, including projects under development, stand at approximately 10.64 GWp and 3 GW, respectively, positioning Torrent Power as a key participant in India’s energy transition.
Torrent Power is widely regarded as a leading power distributor in India. In its licensed areas in Gujarat, it has achieved the lowest distribution losses and best reliability indices in the country.
Larsen & Toubro is a $30 billion Indian multinational group with core strengths in project engineering and construction, manufacturing of capital goods, and technology-led services. The group operates across infrastructure, energy, defence, heavy engineering, IT, and financial services, undertaking complex projects in India and international markets.
