Punjab: Torrent Power to acquire Nabha Power plant from L&T, sold for Rs 6,889 crore
Last year, NPL achieved its highest-ever plant availability factor of 95 percent. The Centre for Science and Environment (CSE), a research and advocacy organisation, too, had named NPL’s Rajpura facility as India’s best-performing supercritical coal-based thermal power plant in terms of emission intensity (in plants having less than 800 MW capacity). Torrent Power has entered into an agreement with Larsen & Toubro to acquire a 100 percent stake from the latter in Rajpura-based Nabha Power Limited (NPL) for an enterprise value of Rs 6,889 crore. The acquisition is structured as a complete buyout of equity and convertible instruments held by L&T Power Development Limited. Commissioned in 2014, the 1400 MW (two supercritical plants of 700 MW each) thermal power plant is believed to be one of the most efficient power plants in Punjab. Punjab: Torrent Power to acquire Nabha Power plant from L&T, sold for Rs 6,889 crore Commissioned in 2014, the Rajpura-based NPL comprises two supercritical units of 700 MW each article_Author Ruchika Khanna Aman Sood Patiala, Updated At : 07:59 PM Feb 16, 2026 IST fb twitter whatsapp Follow us 0 Follow us Connect with us 1 Connect with us featured-imgfeatured-img Nabha Power Plant, Rajpura. File Photo Advertisement Torrent Power has entered into an agreement with Larsen & Toubro to acquire a 100 percent stake from the latter in Rajpura-based Nabha Power Limited (NPL) for an enterprise value of Rs 6,889 crore. Advertisement The acquisition is structured as a complete buyout of equity and convertible instruments held by L&T Power Development Limited. Advertisement Commissioned in 2014, the 1400 MW (two supercritical plants of 700 MW each) thermal power plant is believed to be one of the most efficient power plants in Punjab. Advertisement Built with Japanese technology, it has consistently outperformed industry benchmarks. Last year, NPL achieved its highest-ever plant availability factor of 95 percent. The Centre for Science and Environment (CSE), a research and advocacy organisation, too, had named NPL’s Rajpura facility as India’s best-performing supercritical coal-based thermal power plant in terms of emission intensity (in plants having less than 800 MW capacity). Official sources in the power department told The Tribune that the L&T Power Development Limited had first asked the state government to buy the plant during the tenure of the previous Congress government. In August 2022, L&T had even written a letter to the Chairman of Powercom offering them the plant for Rs 9,690 crore. This letter, written by the Director cum Vice President of the company had said that the company had invested Rs 10,000 crore in setting up the plant. However, the deal with the government ultimately did not get through. A senior Punjab State Power Corporation Limited (PSPCL) functionary told The Tribune, “Since the power purchase agreement (PPA) is already signed, the change of ownership will not make any difference as for now. However, at a later stage, there might be some issues which can be sorted out mutually, as is the scenario in such cases.” L&T chairman and managing director S N Subrahmanyan said, “The divestment of NPL aligns with L&T’s strategic objective of unlocking value to strengthen our robust core businesses. This move positions us to create long-term value for all our stakeholders — business partners, shareholders, and employees.” Speaking on the development, Torrent Power Limited chairman Samir Mehta said, “The acquisition marks Torrent’s entry into the high-growth power market of northern India. Upon completion, NPL will add a high-quality, best-in-class, and well-established operating asset to our portfolio supported by fully contracted cash flows and a strong operational track record. The acquisition will be value accretive from day one, delivering a meaningful uplift in the overall revenues and profitability.” The plant operates under a 25-year PPA, providing guaranteed long-term cash flows. It has long-term Fuel Supply Agreements (FSAs), with the flexibility to blend domestic and imported coal. The plant also helps L&T to pivot away from non-core asset-heavy development projects to focus on its core business of engineering, procurement, and construction.
