Larsen & Toubro sells Nabha Power to Torrent Power

Transaction includes equity and convertible instruments.

L&T Power Development Ltd (LTPDL), a wholly owned subsidiary of Larsen & Toubro (L&T), has agreed to sell 100% of its stake in Nabha Power Ltd (NPL) to Torrent Power Ltd.

The deal, subject to regulatory approvals, includes all equity and convertible instruments of NPL.

NPL, commissioned in 2014, operates a 1,400 MW (2x700 MW) coal-fired power plant at Rajpura in Punjab under a 25-year Power Purchase Agreement. The plant also has long-term coal supply agreements and can blend domestic and imported coal, providing operational flexibility.

S N Subrahmanyan, chairman and managing director of L&T, said the divestment aligns with the company’s strategy to exit development projects and focus on its core businesses. “This move positions us to create long-term value for all our stakeholders — business partners, shareholders and employees”.

Samir Mehta, chairman of Torrent Power, said the acquisition gives the company a fully operational, high-quality asset in northern India. He added it will boost revenues, profitability, and portfolio diversification without adding development or execution risk.

NPL has a strong track record, with a Plant Availability Factor of 95.36% in FY25 and a Plant Load Factor of 94.33% in July 2024, ranking it second among India’s thermal plants above 500 MW.