Torrent Power share price surged by 7% during Monday’s trading session after it received a letter of award from MP Power Management Company for supplying electricity from its upcoming 1,600 MW coal-based facility, which will involve an investment of ₹22,000 crore.
The company announced that the Letter of Award (LoA) was issued following its participation in the competitive bidding process managed by MPPMCL, with a tariff set at ₹5.829/kWh. This initiative represents an investment of around ₹22,000 crore and will mark the Torrent Group’s largest financial commitment in the power sector to date.
The firm plans to establish a greenfield Ultra-Supercritical power plant in Madhya Pradesh with a capacity of 2×800 MW, supplying the entire output to MPPMCL. MPPMCL will secure the necessary coal for the power plant in accordance with the SHAKTI Policy set by the Ministry of Coal. The project is intended to be launched within 72 months following the signing of a 25-year Power Purchase Agreement (PPA).
Jinal Mehta, Vice Chairman and Managing Director of Torrent Power, stated, “This investment from Torrent Power will be crucial in helping the Government of India achieve its ambitious goal of adding 80 GW of coal-based capacity by 2032, which will support the nation’s economic development and provide essential base load capacity to stabilize the grid.”
The initiative is projected to generate approximately 8,000 to 10,000 direct and indirect employment opportunities during its construction phase and 1,500 direct and indirect jobs during its operational phase.
With the increase in capacity, Torrent Power will hold a total committed generation capacity of 9.6 GWp and 3 GW in pumped storage.
Torrent Power share price today
Torrent Power share price today opened at ₹1,283.40 apiece on the BSE, the stock touched in an intraday high of ₹1,313.70, and an intraday low of ₹1,255.85 apiece.
Ruchit Jain, VP – Equity Technical Research, Motilal Oswal Financial Services Ltd, stated that Torrent Power share price has recently corrected along with the broader markets. However prices are trading near to their support zone of ₹1,220-1,200 and RSI readings are in the oversold zone. Hence, some pullback move can be expected in the short term.
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