Feb 16 (Reuters) – India’s Torrent Power said on Monday it would acquire a coal-fired power plant operator in northern India from Larsen & Toubro for 68.89 billion rupees ($759.48 million), including debt, as it seeks to build capacity in the region.
Larsen & Toubro’s L&T Power Development, which will execute the deal, will earn Rs 3,661 crore from the sale of power plant operator Nabha Power, the company said in a separate statement.
Nabha operates a 1,400 MW coal-fired power plant in the northern Indian state of Punjab and supplies all electricity to the state power utility under a 25-year contract.
Torrent said it expects the deal to increase its operating capacity from about 5 gigawatts to 6.4 gigawatts.
The deal adds to Torrent’s recent efforts to expand its thermal power portfolio as power generators turn to coal-fired power to meet India’s growing electricity demand.
Last year, Torrent announced a $2.5 billion investment in coal power projects in central India and is evaluating plans to build 5-7 GW of installed capacity over the next decade.
“This acquisition marks Torrent’s entry into the high-growth power market in northern India,” Torrent Power chairman Samir Mehta said in a statement.
He added that the deal would “significantly enhance overall revenue and profitability”.
(1 USD = 90.7070 Indian Rupees)
(Reporting by Yagnoseni Das in Bengaluru; Writing by Abinaya Vijayaraghavan; Editing by Rashmi Aich and Mrigank Dhaniwala)