Mumbai : L&T Power Development Ltd
(LTPDL), a wholly-owned subsidiary of Larsen & Toubro (L&T), today agreed
to sell 100% of equity and convertible instruments in Nabha Power Ltd (NPL) to
Torrent Power Ltd, a leading name in the Indian power sector.
NPL is a wholly-owned subsidiary
of LTPDL, and the transaction is subject to requisite regulatory approvals.
Given NPL’s long-term power
purchase agreement and stable operating performance, the divestment is a
value-driven monetisation exercise. The transaction is aligned with L&T’s
broader strategy to exit the development projects business.
Commenting on this, S N Subrahmanyan,
Chairman & Managing Director - 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”.
Speaking
on the development, Samir Mehta, Chairman - Torrent
Power Ltd, stated: “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: A Legacy of Vision
and Execution
Nabha Power Ltd (NPL) is a
wholly-owned subsidiary of L&T Power Development Ltd. 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 power
plant was set up under Case II Competitive Bidding Guidelines of Government of
India. It operates under a 25-year Power Purchase Agreement.
Further, the plant has long-term
Fuel Supply Agreement (FSA) with SECL and NCL for 2.775 million MT and 2.464
million MT, respectively, along with mechanisms for alternate coal procurement
to address any supply shortfall. The plant’s equipment is designed to blend
domestic and imported coal, providing operational and fuel flexibility.
The power plant has built a
strong operational and sustainability track record, underscored by a
highest-ever Plant Availability Factor (PAF) of 95.36% in FY25 and a PLF of
94.33% in July 2024, ranking 2nd among all thermal power plants
(>500 MW) in India.