Torrent Power jumps 6% on ₹1,825 Crore order win

1 Apr 2024 , 01:17 PM

The early trading on April 1 saw Torrent Power’s share price rise by more than 6% after the business secured a 150-MW wind-solar hybrid project from its distribution unit.

Torrent Power was trading at ₹1,421.00 at 12:29 p.m. on the BSE, up ₹63.45, or 4.69%.

“….. has received Letter of Award from Torrent Power Limited-Distribution Unit for setting up of 150 MW (RE Power) Grid-Connected Wind Solar Hybrid Projects under Greenshoe option,” the business stated in a press release.

The project, which has a cost of ₹1,825 Crore, will be put into service 24 months after the Power Purchase Agreement (PPA) is signed. The project will be under contract for 25 years after it is put into commission.

During the life of the PPA, the annual Capacity Utilisation Factor (CUF) cannot be less than 50%, and the rated power capacity of solar and wind power must be in a 2:1 ratio.

The company stated that in addition to the contractual capacity of 150 MW, it wants to install 245 MW of wind and solar capacity in order to achieve the 50% CUF requirement.

Another development concerns the dispute over the performance bank guarantees that Torrent Power (TPL) and Solar Energy Corporation of India Limited (SECI) submitted for the release of the power purchase agreements dated May 23, 2018, which were executed between TPL and SECI. On March 28, the Central Electricity Regulatory Commission stated that SECI was not obligated to release the performance bank guarantees, which totaled ₹60,06,00,000 and ₹39,90,00,000, submitted by TPL.

The company received a letter of intent (LoA) from Torrent Power Limited-Distribution Unit on March 16 to establish 300 MW (RE Power) GridConnected Wind Solar Hybrid Projects, with an estimated cost of ₹3,650 Crore.

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