Rs 22,000 Crore Project: Power Generation Company to develop 1,600 MW Coal-Based Thermal Power Project in Madhya Pradesh

Torrent Power Ltd has been awarded a Letter of Award (LoA) by MP Power Management Company Limited (MPPMCL) to develop a 1,600 MW coal-based thermal power project in Madhya Pradesh. The project, which will consist of a 2x800 MW Ultra-Supercritical power plant, was secured through a competitive bidding process at a tariff of Rs. 5.829 per kWh. This initiative marks the single largest investment by the Torrent Group in the power sector, with an estimated cost of Rs 22,000 crore. The entire power generated from the plant will be supplied to MPPMCL under a 25-year Power Purchase Agreement (PPA).

The new plant will be built on a Design, Build, Finance, Own, and Operate (DBFOO) model, with MPPMCL responsible for arranging the necessary coal under the Ministry of Coal's SHAKTI Policy. The project is slated for commissioning within 72 months of the PPA's execution. By utilising Ultra-Supercritical technology, the plant will be highly efficient, leading to significantly lower carbon emissions compared to conventional power plants. The construction phase is expected to generate 8,000 to 10,000 direct and indirect jobs, while the operational phase will create around 1,500 jobs.

This project will significantly boost Torrent Power's generation capacity, bringing its total locked-in generation and pump storage capacity to 9.6 GWp and 3 GW, respectively. This includes its existing 4.9 GWp of installed capacity, along with under-development projects comprising 3.1 GWp of renewable energy, 1.6 GW of thermal capacity from this new plant, and 3 GW of pumped storage capacity. The investment is seen as a key step in helping the government of India achieve its goal of adding 80 GW of coal-based capacity by 2032 to support the country's economic growth and stabilise the power grid with much-needed baseload capacity.

About the Company

Torrent Power, an integrated power utility and part of the Rs 45,000 crore Torrent Group, operates across the entire power value chain, including generation, transmission, and distribution. The company has a total generation and pump storage capacity of approximately 9.6 GWp and 3 GW, respectively, with an installed capacity of 4.9 GWp from a mix of gas, renewable, and coal-based sources. It is also a major power distributor, serving over 4.21 million customers and distributing nearly 31 billion units of power in several key cities across Gujarat, Maharashtra, Uttar Pradesh, and the Union Territory of Dadra and Nagar Haveli and Daman and Diu.

The stock has a 52-week high of Rs 2,037.35 and a 52-week low of Rs 1,207.20. Torrent Power Limited has a market capitalisation of over Rs 63,000 crore. The stock has delivered a 3-year return of 120 per cent and an impressive 10-year return of 730 per cent. The company's Price-Earnings (PE) Ratio stands at 23.

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