In a significant development for Punjab’s energy landscape, Torrent Power Limited has agreed to acquire Nabha Power Limited (NPL) from Larsen & Toubro (L&T) for ₹3,660 crore. The deal includes 100% equity and convertible instruments held by L&T’s wholly owned subsidiary, L&T Power Development Limited, marking a strategic shift for both companies.
Commissioned in 2014, the Rajpura-based plant operates two supercritical units of 700 MW each, giving it a total installed capacity of 1,400 MW. Over the years, the facility has earned a reputation as one of the best-performing private thermal power plants in the region. It supplies affordable electricity to Punjab under a long-term Power Purchase Agreement (PPA), ensuring stable and predictable revenue flows.
The plant’s performance has also drawn national recognition. In 2025, the Centre for Science and Environment (CSE) named NPL’s Rajpura facility as India’s best-performing supercritical coal-based thermal power plant in the below 800 MW category, based on emission intensity. This acknowledgment reinforced its standing as a technically advanced and environmentally efficient coal-based power project.
For L&T, the divestment aligns with its broader corporate strategy of exiting the development projects business. Chairman and Managing Director S N Subrahmanyan described the move as part of a value-unlocking exercise aimed at strengthening the company’s core operations. By monetising this operational asset, L&T plans to redeploy capital into its key engineering and infrastructure businesses while delivering long-term value to stakeholders.
Torrent Power, on the other hand, sees the acquisition as a gateway to North India’s growing power market. Chairman Samir Mehta said the acquisition would be value accretive from day one. The Rajpura plant brings fully contracted cash flows, strong operational performance, and zero development risk. It also enhances Torrent’s geographic diversification while expanding its generation portfolio with a high-quality, revenue-generating asset.
The transaction does not change the plant’s existing PPA commitments, which means power supply to Punjab will continue uninterrupted. Consumers are unlikely to experience any immediate impact. Industry observers believe Torrent’s operational expertise could further improve efficiency and strengthen long-term reliability.
Financially, the ₹3,660 crore deal reflects the plant’s stable revenue base and operational credibility. With 1,400 MW of installed capacity and more than a decade of performance history, the Rajpura asset stands as a strategic addition to Torrent’s expanding footprint.
The acquisition underscores a broader trend in India’s power sector, where companies are restructuring portfolios to balance growth, risk management, and capital efficiency. While L&T sharpens its focus on core sectors, Torrent Power expands confidently into new territories without assuming construction or execution risks.
As India continues to navigate its energy transition, efficient supercritical thermal plants like Rajpura remain vital for grid stability. The change in ownership signals strategic realignment at the corporate level, but the plant’s role in powering Punjab’s homes and industries remains unchanged.