Torrent Power forays into transmission with Solapur power project, stock rises 3%

The share price has gained 41 percent in the last three months.

Shares of Torrent Power Limited gained almost 4 percent to Rs 1,190 in morning trade on February 28 after the company announced that it bagged a project for the evacuation of power from renewable energy projects in Solapur, Maharashtra, marking its foray into the transmission segment.

The project has been conceived to evacuate Renewable energy with a capacity of 1,500 MW from Solapur and entails the setting up of a transmission line of about 44 kilometres from the existing Solapur substation.

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Per the company's exchange filing, the annual transmission charges of the project are Rs 50 crore, and the company will build this project on a BOOT basis (build own operate transfer) and operate it for 35 years. The project is expected to be commissioned in 24 months, the company stated.

While Torrent Power owns and operates Transmission projects; the award of this project marks Torrent Power’s foray into the development of Transmission projects under the Tariff Based Competitive Bidding (TBCB) framework.

In the December quarter, it reported a consolidated net profit of Rs 359.8 crore, around 47 percent lower than the previous fiscal. The net profit was impacted by lower topline and dismal operating numbers with higher fuel costs. Revenue from operations for the same period also fell 1.2 percent on-year.

At 9:25 am, the stock was trading at Rs 1,186, up 3.1 percent from the previous close on the NSE. The share price has gained 41 percent in the last three months.