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.
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.
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.
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.
Read more: Tata Capital Plans $2 Billion IPO in September, Targets $11 Billion Valuation!
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.
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.
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.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Sep 1, 2025, 2:31 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
