Torrent Power stock in focus today as firm to invest Rs 22,000 cr in Madhya Pradesh

Torrent Power shares are in news today after the firm said it has announced plans to invest approximately Rs 22,000 crore in a 1600 MW ultra-supercritical power plant in Madhya Pradesh. This project marks the single-largest investment by the Torrent Group in the power sector.

The stock closed 1.55% lower at Rs 1228 on Friday against the previous close of Rs 1247.45 on BSE. Market cap of the firm stood at Rs 61,884 crore.   

The Letter of Award (LoA) was secured following a competitive bidding process conducted by the Madhya Pradesh Power Management Company Limited (MPPMCL), with a tariff set at Rs 5.829 per kWh. The entire capacity will be supplied to MPPMCL, and coal will be sourced under the SHAKTI Policy of the Ministry of Coal. The project is expected to be commissioned within 72 months following the execution of a 25-year Power Purchase Agreement (PPA).

Jinal Mehta, Vice Chairman and Managing Director of Torrent Power, expressed the project’s significance in supporting India’s energy goals. “This investment by Torrent Power will play a significant role in achieving the GoI’s ambitious target of 80 GW of additional coal-based capacity by 2032 to support the country’s economic growth and to add much-needed base load capacity to stabilise the grid,” said Mehta.

The construction phase of the project is anticipated to create 8,000 to 10,000 direct and indirect jobs, with 1,500 jobs continuing into the operational phase. With this addition, Torrent Power’s total generation and pump storage capacity will increase to 9.6 GWp and 3 GW, respectively.

The investment underlines Torrent Power’s commitment to contributing significantly to the national energy framework, aligning with governmental objectives. The company expects the project to not only bolster its capacity but also to provide a stable power supply for the region, which is critical for economic stability. Additional details about the implementation and execution of the project will likely emerge as the power plant progresses towards its anticipated completion.