The cash consideration for the transaction is Rs. 3,660.87 crores to be received upon closing subject to closing adjustments, L&T said in a stock exchange announcement. The transaction is aligned with L&T’s broader strategy to exit the development projects business.
NPL owns and operates a 1,400 MW (2 X 700 MW) supercritical coal-fired thermal power plant at Rajpura in Patiala district, Punjab.
NPL is a fully contracted thermal power asset with revenue of Rs 4,866 crore and Adjusted EBITDA of Rs 1,153 crores in FY 2025.
The supercritical plant, built on advanced Japanese technology, maintains sustained availability levels above 90 per cent. Strategically located in a power-deficit region, the plant also supports potential ancillary revenue streams. Furthermore, existing infrastructure allows for seamless expansion of capacity, supporting future growth opportunities.
Upon completion of the acquisition, Torrent’s operational capacity will increase from 5 GW to 6.4 GW.
“The acquisition marks Torrent’s entry into the high-growth power market of northern India. Upon completion, NPL will add a high-quality, best-in-class and well-established operating asset to our portfolio supported by fully contracted cash flows and a strong operational track record. The acquisition will be value accretive from day one, delivering a meaningful uplift in the overall revenues and profitability,” Samir Mehta, Chairman, Torrent Power, said.
Leveraging our proven expertise in managing power assets, this addition provides a robust platform to enhance scale, improve operational efficiency, and strengthen cash-flow stability. Importantly, the transaction expands our footprint without introducing development or execution risk and further enhances portfolio diversification while remaining firmly aligned with our disciplined approach to growth, prudent capital allocation, and balance-sheet resilience, he added.
“The divestment of NPL aligns with L&T’s strategic objective of unlocking value to strengthen our robust core businesses. This move positions us to create long-term value for all our stakeholders — business partners, shareholders and employees,” S N Subrahmanyan, Chairman & Managing Director – L&T, said.
Commissioned in 2014, the NPL power plant was set up under Case II Competitive Bidding Guidelines of Government of India. It operates under a 25-year Power Purchase Agreement. Further, the plant has long-term Fuel Supply Agreement (FSA) with SECL and NCL for 2.775 million metric tonnes and 2.464 million metric tonnes respectively, along with mechanisms for alternate coal procurement to address any supply shortfall.
The plant’s equipment is designed to blend domestic and imported coal, providing operational and fuel flexibility. The power plant has built a strong operational and sustainability track record, underscored by a highest-ever Plant Availability Factor (PAF) of 95.36 per cent in FY25 and a PLF of 94.33 per cent in July 2024, ranking 2nd among all thermal power plants ( less than 500 MW) in India.
Torrent Power, Rs 29,165 crore integrated power utility of about Rs 45,000 crore Torrent Group, is one of the largest companies in the country’s power sector with presence across the entire power value chain – generation, transmission and distribution.
The acquisition is expected to be completed on or before 30 June 2026.
Torrent said the acquiring company is an integrated power player encompassing the entire value chain – power generation, transmission and distribution. This acquisition would enable, Torrent to expand its current thermal generation portfolio and will extend company’s presence in Northern India.
