Torrent Power acquires Nabha Power from L&T to expand coal portfolio

India’s Torrent Power has agreed to acquire Nabha Power, a coal-fired power plant operator owned by Larsen & Toubro, in a deal valued at 68.89 billion rupees, including debt.

The transaction marks a strategic expansion into northern India’s electricity market, where demand continues to grow.

Torrent will pay 36.61 billion rupees to Larsen & Toubro, which is selling the asset through its unit L&T Power Development.

The acquisition strengthens Torrent’s presence in coal-based generation and increases its operational footprint as thermal power gains importance in India’s energy mix.

Nabha plant and long-term supply

Nabha Power operates a 1,400-megawatt coal-fired plant in Punjab. The facility supplies electricity output to the state power corporation under a long-term agreement lasting 25 years.

This contract provides a stable revenue stream and ensures utilisation of the plant’s capacity.

The acquisition allows Torrent Power to secure an established generation asset with assured demand. Punjab remains an electricity market, with steady consumption driven by industry, agriculture, and urban growth.

By taking control of Nabha Power, Torrent enters a region where long-term power purchase agreements help reduce volatility.

The deal also gives Torrent access to infrastructure that is operational, eliminating risks and delays associated with building power plants. This positions the company to increase generation output without waiting for new projects.

Capacity growth and coal expansion

Once the acquisition is completed, Torrent Power expects its operational capacity to rise to 6.4 gigawatts, up from around 5 gigawatts currently. This reflects an increase in generation scale and strengthens its role among India’s private power producers.

The purchase aligns with Torrent’s efforts to expand its thermal portfolio.

India’s rising electricity consumption has led power producers to increase coal-based generation, which continues to provide a baseload supply despite growth in renewable energy.

Torrent has outlined expansion plans. Last year, the company announced a coal power project worth $2.5 billion in central India.

It is also evaluating plans to add between 5 gigawatts and 7 gigawatts of additional capacity over the next decade. These moves indicate a strategy focused on expanding generation assets to meet power needs.

Thermal plants remain critical for ensuring grid stability, particularly during peak demand periods.

By increasing coal capacity, Torrent is positioning itself to capture demand growth while strengthening operational scale.

Financial impact and strategic shift

The acquisition is expected to support Torrent Power’s revenue and profitability growth by adding an operational plant with an existing supply agreement.

This provides predictable income and improves financial performance.

For Larsen & Toubro, the sale reflects a shift away from power generation assets.

The divestment allows Larsen & Toubro to redeploy capital while transferring ownership of Nabha Power to Torrent.

The deal highlights consolidation in India’s power sector, as companies expand generation portfolios to meet rising electricity demand. Torrent’s entry into northern India strengthens its geographic presence and supports capacity expansion plans.

As electricity consumption continues to grow across regions, acquisitions such as Nabha Power allow companies to scale operations faster while securing stable supply agreements and infrastructure.

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