Punjab: Torrent Power acquires Rajpura Thermal Plant from L&T for Rs 6,889 crore
PTC Web Desk: The Rajpura Thermal Power Plant (Nabha Power Limited) in Punjab has been acquired by Ahmedabad-based Torrent Power Limited after L&T Power Development Limited signed an agreement to sell the project for Rs 6,889 crore.
he power plant was earlier owned by Larsen & Toubro, which had decided nearly six years ago to divest the asset. On July 22, 2020, the company had written to the Punjab government offering to sell the thermal plant to Punjab State Power Corporation Limited (PSPCL).
Following this, a five-member committee was constituted on October 9, 2020, with the approval of the PSPCL Chairman to evaluate the purchase proposal. However, the matter did not move forward.
In its earlier communication to the state, L&T had proposed to sell the Rajpura thermal plant for approximately Rs 9,690 crore, arguing that nearly Rs 10,000 crore had been invested in the project. The plant has now been sold to Torrent Power at a lower valuation of Rs 6,889 crore.
The Rajpura Thermal Plant has a total installed capacity of 1,400 MW, comprising two units of 700 MW each. The first unit commenced operations on February 1, 2014, while the second unit became operational on July 10, 2014. The project is based on Japanese technology.
The Punjab government has a 25-year Power Purchase Agreement (PPA) with the plant. Officials have clarified that the change in ownership will not impact the existing electricity supply agreement.
Notably, the current Aam Aadmi Party (AAP) government had acquired the privately owned GVK Goindwal Thermal Plant on December 31, 2024, for Rs 1,080 crore, a move that Chief Minister Bhagwant Mann had highlighted as a major achievement of his government.
- PTC NEWS
