Torrent Power Wins LoA for 1,600 MW Thermal Power Plant in Madhya Pradesh; Share Price Surges

Torrent Power Ltd has received a Letter of Award (LoA) from MP Power Management Company Ltd (MPPMCL) for the development of a 1,600 MW coal-based thermal project in Madhya Pradesh. The plant will be built with 2 units of 800 MW each and supply its entire capacity to MPPMCL under a 25-year agreement, as per news reports.

Investment and Tariff Details

As per the exchange filing, the project cost has been pegged at about ₹22,000 crore, making it the largest power sector investment by the Torrent Group. As per news reports, the tariff has been fixed at ₹5.829 per kWh, finalised through a competitive bidding process conducted by MPPMCL. Annual revenue from the project is expected to be around ₹6,500 crore.

Technology and Fuel Supply

The proposed facility will use ultra-supercritical technology, which has better efficiency compared with conventional coal plants. Fuel requirements will be met through arrangements by MPPMCL under the Ministry of Coal’s SHAKTI policy. The project will follow the Design, Build, Finance, Own and Operate (DBFOO) model.

Execution Timeline

According to the company, the thermal plant is expected to be commissioned within 72 months from the signing of the power purchase agreement. Once operational, it will add significant capacity to Torrent Power’s portfolio, taking the company’s total locked-in generation capacity to 9.6 GWp, in addition to 3 GW of planned pump storage projects.

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Employment Generation

As per news reports, the project is projected to create between 8,000 and 10,000 jobs during its construction phase. Around 1,500 jobs are expected to be generated once the plant begins operations, contributing to long-term employment in the state.

Torrent Power Share Price Performance 

As of September 1, 2025, 11:04 AM, Torrent Power share price was trading at ₹1,242.30, up 1.22% from the previous closing price.

Conclusion

The Madhya Pradesh project represents a major capacity addition for Torrent Power, with long-term supply secured for MPPMCL under the LoA. The plant is scheduled to be developed over the next six years with coal supply arranged under the SHAKTI policy.

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