Power Utility Company to Invest Rs 22,000 Crores in 1,600 MW Coal-Based Thermal Power Project in Madhya Pradesh

DSIJ Intelligence-2 / 30 Aug 2025/ Categories: Mindshare, Trending

Power Utility Company to Invest Rs 22,000 Crores in 1,600 MW Coal-Based Thermal Power Project in Madhya Pradesh

With a market capitalization of Rs 61,800 crore, the stock has delivered a 3-year return of 242 per cent, although it has declined by 26.85 per cent over the past year.

Torrent Power Limited has announced plans to set up a 1,600 MW coal-based thermal power project in Madhya Pradesh. The project will be a greenfield development with two 800 MW Ultra-Supercritical units, making it the single largest investment in the power sector by the Torrent Group, with a total outlay of about Rs 22,000 crores.

The company has received the Letter of Award (LoA) from MP Power Management Company Limited (MPPMCL) for long-term procurement of power under a 25-year Power Purchase Agreement (PPA). Torrent Power emerged successful in the competitive bidding process at a tariff of Rs 5.829 per kWh. The project will be developed on a Design, Build, Finance, Own, and Operate (DBFOO) model, with MPPMCL arranging coal under the SHAKTI Policy of the Ministry of Coal. Commissioning is targeted within 72 months from the signing of the PPA.

The Ultra-Supercritical technology will enhance efficiency and reduce carbon emissions compared to conventional plants. During the construction phase, the project is expected to create between 8,000 and 10,000 direct and indirect jobs, while operations will support around 1,500 jobs. This expansion aligns with the Government of India’s target of adding 80 GW of additional coal-based capacity by 2032, ensuring base load supply for stable grid operations.

With this development, Torrent Power’s total locked-in generation and pump storage capacity will reach about 9.6 GWp and 3 GW, respectively. Its current portfolio includes 4.9 GWp of installed generation capacity, comprising 2.7 GW of gas-based projects, 1.8 GWp of renewable capacity, and 362 MW of coal-based capacity, alongside 3.1 GWp of renewable projects under development, 1.6 GW of thermal capacity, and 3 GW of pumped storage capacity.

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Torrent Power, part of the Rs 45,000 crores Torrent Group, is one of India’s largest integrated power utilities with operations across generation, transmission, and distribution. The company distributes nearly 31 billion units annually to over 4.21 million customers across Gujarat, Maharashtra, Uttar Pradesh, and the Union Territories of Dadra & Nagar Haveli and Daman & Diu. In its licensed areas in Gujarat, Torrent Power has consistently reported the lowest Aggregate Technical & Commercial (AT&C) losses in the country.

With a market capitalisation of Rs 61,800 crore, the stock has delivered a 3-year return of 242 per cent, although it has declined by 26.85 per cent over the past year.

Disclaimer: The article is for informational purposes only and not investment advice.