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Torrent Power to Acquire 1400 MW Nabha Power from L&T for INR 6,889 Crore

Torrent Power has signed a definitive agreement to acquire 100 percent stake in Nabha Power from Larsen & Toubro for INR 6,889 crore, adding a 1,400 MW fully contracted thermal asset and raising its operational capacity from about 5 GW to 6.4 GW.

February 17, 2026. By Mrinmoy Dey

Torrent Power has announced that the company has entered into a definitive agreement with L&T Power Development (L&TPDL), a wholly-owned subsidiary of Larsen & Toubro (L&T), to acquire 100 percent of equity stake and convertible instruments in Nabha Power (NPL) for INR 6,889 crore.

NPL is a wholly owned subsidiary of LTPDL, and the transaction is subject to requisite regulatory approvals and customary closing conditions. It 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 INR 4,866 crore and adjusted EBITDA of INR 1,153 crore in FY 2025. The supercritical plant, built on advanced Japanese technology, maintains sustained availability levels above 90 percent. 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, stated Torrent Power in a statement.

Upon completion of the acquisition, Torrent's operational capacity will increase from about 5 GW to 6.4 GW. In addition, Torrent will gain NPL's institutional expertise and decade-long technical capabilities, developed through exceptional implementation and operational excellence. This acquisition creates valuable synergies that will strengthen Torrent's greenfield thermal power development strategy, it said.

Speaking on the development, Samir Mehta, Chairman, Torrent Power, said, “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.”

He further added, “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.”

Commenting on this, S.N. Subrahmanyan, Chairman and Managing Director, 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.”

L&T was advised on this deal by Saraf and Partners, and the deal was led by Avirup Nag, Partner at Saraf and Partners, the firm shared.

Torrent Power has an aggregate installed generation capacity of 5,039 MWp comprising 2,730 MW of gas-based capacity, 1,947 MWp of renewable capacity and 362 MW of coal-based capacity. Further, Renewable projects of about 4 GWp, Pumped Storage Capacity of 3 GW and coal-based power capacity of 1.6 GW are under development. Total Generation and Pumped Storage capacity, including projects under development, is about 10.64 GWp and 3 GW, respectively, the company stated.

Tags:

Thermal Power Plants

Torrent power

L and T Power Development

Larsen and Toubro

Nabha Power

Thermal plant acquisition

Thermal plant in Punjab

Samir Mehta

S.N. Subrahmanyan