Torrent Power witnessed a remarkable surge in its shares, climbing over 12% to attain an all-time high, following the acquisition of a ₹1,540 crore Letter of Award from Maharashtra State Electricity Distribution Co Ltd (MSEDCL) for a substantial solar project.
The letter of award, received on March 7, outlines Torrent Power’s responsibility for setting up a 306 MW grid-connected solar power project in Nashik, Maharashtra. This initiative, part of the MSKVY 2.0 scheme by MSEB Solar Agro Power (MSAPL), aims to implement feeder-level solarisation within the distribution network as part of component C of the PM-KUSUM scheme.
Reacting to this significant development, Torrent Power’s shares reached an unprecedented high of ₹1,288.45 on the BSE, solidifying the company’s market capitalisation at around ₹60,850 crore.
MSAPL has established a Special Purpose Vehicle (SPV) named MSKVY Ninth Solar SPV to facilitate the project’s development. Torrent Power is set to acquire 100% of the equity shares of the project SPV and receive Central Finance Assistance (CFA) from the Central Government in line with the terms of the PM-KUSUM scheme.
The ambitious project is slated to be commissioned within 18 months from the Letter of Approval (LoA), with an estimated cost of ₹1,540 crore and a fixed tariff of ₹3.10/kWh for 25 years.
This recent award not only adds substantial capacity to Torrent Power’s renewable portfolio but also positions the company as a key player in India’s renewable energy landscape. With ongoing projects, Torrent Power’s renewable capacity is set to skyrocket to 3 GW within the next 18-24 months.
As Torrent Power continues to expand its footprint in the green energy sector, exploring avenues like pumped storage hydro and green hydrogen, the company’s commitment to sustainable energy solutions remains evident.
