L&T Power Development Ltd, a wholly-owned subsidiary of Larsen & Toubro, has agreed to sell 100% equity and convertible instruments in Nabha Power Ltd (NPL) to Torrent Power Ltd, a leading player in India’s power sector. The transaction is subject to required regulatory approvals.
The divestment is a value-driven monetisation exercise, leveraging NPL’s long-term power purchase agreements and stable operational performance. The move aligns with L&T’s broader strategy to exit the development projects business and focus on its core areas.
S N Subrahmanyan, Chairman & Managing Director of 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.”
Torrent Power Expands Northern India Footprint
Samir Mehta, Chairman of Torrent Power, commented: “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 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, enhancing revenues, profitability, and operational efficiency, while expanding our footprint without introducing development or execution risk.”
Nabha Power: A High-Performing Thermal Asset
- NPL operates a 1,400 MW (2 X 700 MW) supercritical coal-fired power plant at Rajpura, Patiala, Punjab
- Commissioned in 2014 under Case II Competitive Bidding Guidelines of the Government of India
- Operates under a 25-year Power Purchase Agreement
- Long-term Fuel Supply Agreements (FSA) with SECL (2.775 million MT) and NCL (2.464 million MT), with alternate coal procurement options
- Plant equipment can blend domestic and imported coal for operational flexibility
The plant has consistently demonstrated strong performance and sustainability. Highlights include:
- Plant Availability Factor (PAF): 95.36% in FY25
- Plant Load Factor (PLF): 94.33% in July 2024
- Ranked 2nd among all thermal power plants (>500 MW) in India
This transaction not only strengthens Torrent Power’s northern India presence but also ensures operational stability and value creation for both companies.
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