Torrent Power shares jump 12% on bagging ₹1540 crore solar project in Maharashtra

Torrent Power shares rallied over 12.4% to ₹1287.50 on Monday and touched a 52-week high. Torrent Power has received a Letter of Award from Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) for the supply of 306 MW Solar power. In an exchange filing on March 7, the company said the project is part of the Mukhya Mantri Saur Krushi for feeder-level solarisation under the PM KUSUM Scheme.

The project, conceived by MSEV Solar Agro Power Limited (MSAPL), will be set up at 48 locations across Maharashtra's Nashik district. It will be commissioned within 18 months of LOA at an estimated cost of ₹1540 crore. The tariff for the project will be 3.10/kWh for 25 years.

At 12:53 pm, Torrent Power shares traded at ₹1,190 up by 4.9% on the National Stock Exchange

The Maharashtra Government is working on a cluster-based approach to develop its MSKVY 2.0 scheme. The land acquisition and approvals for the project have already been obtained by MSAPL directly into the project through SPVs. Torren Power will acquire a 100% stake in the project SPV and get Central Finance Assistance (CFA) from the Central Government for eligible capacity under the PM KUSUM Scheme.

With the addition of this 306 MW solar project, Torrent Power's renewable capacity under construction has increased to 1.7 GW. The projects will scale up the company's capacity to 3GW with their completion within the next 18-24 months. Torrent Power is also working on other green energy options including pumped storage hydrogen and green hydrogen.

Torrent Power is among the biggest power distributors in India. The company distributes nearly 28 billion units to more than 4 million customers in its licensed areas including Gujarat's Ahmedabad, Gandhinagar, Surat, Dholera SIR; Maharashtra's Bhiwandi, Shil and Agra in Uttar Pradesh.

Torrent Power has an installed generation capacity of 4,287 MW comprising 2,730 MW of gas-based capacity, 1,195 MW of renewable capacity and 362 MW of coal-based capacity. Additionally, 1708 MW of renewable energy projects are under development.