Torrent Power acquires Nabha Power in a ₹6,889 crore deal from Larsen & Toubro, marking a significant expansion of its thermal generation portfolio at a time when India’s electricity demand is rising sharply. The transaction gives Torrent Power full ownership of Nabha Power Ltd (NPL), which operates a 1,400 MW supercritical coal-fired plant in Punjab, strengthening the company’s presence in northern India and boosting its overall capacity.
The acquisition comes as India accelerates power capacity additions to meet surging consumption and ensure grid stability, with both renewable and coal-based projects scaling up nationwide.
Torrent Power Ltd has signed a definitive agreement with L&T Power Development Ltd (L&TPDL), a wholly owned subsidiary of Larsen & Toubro, to acquire a 100% equity stake and convertible instruments in NPL at an enterprise value of ₹6,889 crore. The deal is subject to regulatory approvals and customary closing conditions.
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1,400 MW Rajpura plant strengthens portfolio
NPL operates a 1,400 MW (2×700 MW) supercritical coal-based power plant at Rajpura in Punjab’s Patiala district. Commissioned in 2014, the fully contracted asset reported revenue of ₹4,866 crore in FY25.
Built using advanced Japanese technology, the plant has consistently maintained availability levels above 90%. Its location in a power-deficit region enhances its strategic value, while existing infrastructure provides room for future capacity expansion.
The facility has long-term fuel supply agreements with South Eastern Coalfields Ltd (SECL) and Northern Coalfields Ltd (NCL) for 2.775 million tonnes and 2.464 million tonnes of coal, respectively. It also has provisions for alternate coal sourcing and is designed to blend domestic and imported coal, ensuring operational flexibility.
Capacity to rise to 6.4 GW
Following completion of the deal, Torrent Power’s operational capacity will increase from 5 GW to 6.4 GW. The company said it will also benefit from NPL’s decade-long technical and operational expertise.
Samir Mehta, chairman of Torrent Power, said the acquisition marks the company’s entry into the high-growth northern power market and is expected to be value-accretive from day one, contributing meaningfully to revenue and profitability.
S.N. Subrahmanyan, chairman and managing director of Larsen & Toubro, said the divestment aligns with the group’s strategy of unlocking value and sharpening focus on core businesses.
EY acted as the exclusive M&A advisor to L&T on the transaction.
Torrent Power’s expanding energy mix
Torrent Power currently has an 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. The company is developing an additional 4 GWp of renewable projects, 3 GW of pumped storage capacity, and 1.6 GW of coal-based power capacity.
In electricity distribution, Torrent supplies nearly 31 billion units annually to about 4.21 million customers across multiple regions, including Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat, Dadra and Nagar Haveli and Daman and Diu, Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra, and Agra in Uttar Pradesh.
India’s power capacity surges amid rising demand
The acquisition comes as India records rapid additions to its power generation base. According to the power ministry, generation companies have added a record 52.53 GW of capacity so far this financial year, surpassing the previous high of around 34 GW in FY25. Of the total additions, renewable energy accounted for 39.65 GW, while coal-based additions stood at 8.8 GW.
India’s total installed power capacity is now approximately 520 GW, including 248.54 GW of fossil fuel-based capacity and 271.97 GW of non-fossil capacity. The government has set a target of achieving 500 GW of non-fossil capacity by 2030 and net-zero emissions by 2070, even as it plans to add 97 GW of coal-based capacity in the near term to support growing demand and maintain grid stability.