Shares of Torrent Power rose up to 4% to trade at Rs 1,276.6 apiece on September 1 after the company got order to develop coal power plant in Madhya Pradesh.
On August 30, Torrent Power announced it has received Letter of Award (LoA) from MP Power Management Company Limited (MPPMCL) for long-term procurement of power from 1,600 MW new coal-based power plant. The LoA is received pursuant to the company’s participation in the competitive bidding process, conducted by MPPMCL, at a tariff of 5.829 Rs/kWh.
"The Company will set up a greenfield 2x800 MW Ultra-Supercritical power plant in Madhya Pradesh on Design, Build, Finance, Own, and Operate (DBFOO) model and supply the entire capacity to MPPMCL. The requisite coal for the power plant will be arranged by MPPMCL under the SHAKTI Policy of Ministry of Coal. The Project is to be commissioned within 72 months from the date of execution of the PPA. This project entails an investment of approximately Rs 22,000 crore and will be the single largest investment by the Torrent Group in the power sector," said Torrent Power in a stock exchange filing.
The project will be set up based on Ultra-Supercritical technology, which is highly efficient and results in significantly lower carbon emissions compared to conventional power plants, the company added.
At 10:15 am on September 1, Torrent Power shares pared gains from day's high and were trading 2% higher at Rs 1,252.8 apiece.
Jinal Mehta, Vice Chairman and Managing Director, said, "This investment by Torrent Power will play a significant role in achieving GoI’s ambitious target of 80 GW of additional coal-based capacity by 2032 to support the country’s economic growth and for adding much needed base load capacity to stabilise the grid."
The project is expected to create about 8,000 to 10,000 direct and indirect jobs during its construction and 1,500 direct and indirect jobs during its operations phase.
With the addition of this capacity, Torrent Power will have a total locked-in generation and pump storage capacity of 9.6 GWp and 3 GW respectively; comprising of installed generation capacity of 4.9 GWp and an under-development capacity of 3.1 GWp of renewable projects, 1.6 GW of thermal capacity and 3 GW of pumped storage capacity.
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