3 months ago
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L&T Power Development Ltd (LTPDL), a wholly-owned subsidiary of Larsen & Toubro (L&T), has announced to merchantability 100% of equity and convertible instruments successful Nabha Power Ltd (NPL) to Torrent Power Ltd, for ₹3,661 crore.
NPL is simply a wholly-owned subsidiary of LTPDL, and the transaction is taxable to requisite regulatory approvals, L&T said successful a fling.
“Given NPL’s semipermanent powerfulness acquisition statement and unchangeable operating performance, the divestment is simply a value-driven monetisation exercise. The transaction is aligned with L&T’s broader strategy to exit the improvement projects business,” it said.
S.N. Subrahmanyan, Chairman & Managing Director - L&T, said, “The divestment of NPL aligns with L&T’s strategical nonsubjective of unlocking worth to fortify our robust halfway businesses.”
“This determination positions america to make semipermanent worth for each our stakeholders — concern partners, shareholders and employees,” helium said.
Samir Mehta, Chairman, Torrent Power Ltd, stated: “The acquisition marks Torrent’s introduction into the high-growth powerfulness marketplace of bluish India. Upon completion, NPL volition adhd a high-quality, best-in-class and well-established operating asset to our portfolio supported by afloat contracted currency flows and a beardown operational track record.”
“The acquisition volition beryllium worth accretive from time one, delivering a meaningful uplift successful the wide revenues and profitability. Leveraging our proven expertise successful managing power assets, this summation provides a robust level to heighten scale, amended operational efficiency, and fortify cash-flow stability,” helium added.
Nabha Power Ltd (NPL) is simply 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 powerfulness works astatine Rajpura successful Patiala district, Punjab.
Commissioned successful 2014, the powerfulness works was acceptable up nether Case II Competitive Bidding Guidelines of Government of India. It operates nether a 25-year Power Purchase Agreement.
Further, the works has semipermanent Fuel Supply Agreement (FSA) with SECL and NCL for 2.775 cardinal MT and 2.464 cardinal MT, respectively, on with mechanisms for alternate ember procurement to code immoderate proviso shortfall. The plant’s instrumentality is designed to blend home and imported coal, providing operational and substance flexibility.
The powerfulness works has built a beardown operational and sustainability way record, underscored by a highest-ever Plant Availability Factor (PAF) of 95.36% successful FY25 and a PLF of 94.33% successful July 2024, ranking 2nd among each thermal powerfulness plants (>500 MW) successful India.
