L&T Power Development Ltd, a wholly-owned subsidiary of infrastructure major Larsen & Toubro (L&T), on Monday agreed to sell its 100% stake in Nabha Power Ltd (NPL) to Ahmedabad-based Torrent Power Ltd for ₹3,660 crore.
NPL owns and operates the 1,400 megawatt (2 X 700 MW) supercritical coal-fired thermal power plant at Rajpura in Patiala district.
The transaction, which is subject to requisite regulatory approvals, is part of L&T’s broader strategy to exit the development projects business.
Given NPL’s long-term power purchase agreement and stable operating performance, the divestment is a value-driven monetisation exercise, according to a company release.
SN Subrahmanyan, chairman and managing director of L&T, said, “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.”
Commissioned in 2014, the Rajpura 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 with South Eastern Coalfields Ltd (SECL) and Northern Coalfields Limited (NCL) for 2.775 million metric tonnes and 2.464 million metric tonnes, respectively, along with mechanisms for alternative coal procurement to address any supply shortfall. The plant’s equipment is designed to blend domestic and imported coal, providing operational and fuel flexibility.
{{/usCountry}}Further, the plant has long-term fuel supply agreement with South Eastern Coalfields Ltd (SECL) and Northern Coalfields Limited (NCL) for 2.775 million metric tonnes and 2.464 million metric tonnes, respectively, along with mechanisms for alternative coal procurement to address any supply shortfall. The plant’s equipment is designed to blend domestic and imported coal, providing operational and fuel flexibility.
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