Torrent Power Secures 1,600 MW Coal Power Project in Madhya Pradesh
Torrent Power Limited has received approval for a 1,600 MW Ultra-Supercritical coal-based power plant in Madhya Pradesh. The ₹22,000 crore project, secured through competitive bidding, will be developed on a DBFOO model with a 25-year power purchase agreement at ₹5.83 per kWh. Expected to generate ₹6,500 crore annually, the plant will create 8,000-10,000 jobs during construction and 1,500 during operation. This project increases Torrent Power's total generation and pump storage capacity to 9.6 GWp and 3 GW respectively, supporting India's goal of 80 GW additional coal-based capacity by 2032.

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Torrent Power Limited , a leading integrated power utility in India, has received approval to develop a massive 1,600 MW coal-based power plant in Madhya Pradesh. This project marks a significant expansion for the company and is set to become the single largest investment by the Torrent Group in the power sector.
Project Details
The project involves the construction of a greenfield 2x800 MW Ultra-Supercritical power plant, which will be developed on a Design, Build, Finance, Own, and Operate (DBFOO) model. Torrent Power secured this project through a competitive bidding process conducted by MP Power Management Company Limited (MPPMCL).
Key aspects of the project include:
- Capacity: 1,600 MW (2x800 MW)
- Technology: Ultra-Supercritical, ensuring higher efficiency and lower carbon emissions
- Location: Madhya Pradesh
- Investment: Approximately ₹22,000.00 crore
- Power Purchase Agreement: 25-year contract with MPPMCL
- Tariff: ₹5.83 per kWh
Economic Impact
The project is expected to generate substantial revenue for Torrent Power, with estimates suggesting annual earnings of approximately ₹6,500.00 crore. This long-term agreement provides a stable income stream for the company over the next quarter-century.
Environmental Considerations
While the project is coal-based, Torrent Power emphasizes the use of Ultra-Supercritical technology, which is known for its higher efficiency and lower carbon emissions compared to conventional coal power plants. This aligns with the growing focus on reducing the environmental impact of thermal power generation.
Employment Generation
The project is anticipated to create significant employment opportunities:
- 8,000 to 10,000 direct and indirect jobs during the construction phase
- 1,500 direct and indirect jobs during the operational phase
Strategic Importance
Mr. Jinal Mehta, Vice Chairman and Managing Director of Torrent Power, highlighted the strategic importance of this project, stating, "This investment by Torrent Power will play a significant role in achieving GoI's ambitious target of 80 GW of additional coal-based capacity by 2032 to support the country's economic growth and for adding much needed base load capacity to stabilize the grid."
Torrent Power's Growth
With this new project, Torrent Power's total locked-in generation and pump storage capacity will increase to approximately 9.6 GWp and 3 GW respectively. This includes:
- 4.9 GWp of installed generation capacity
- ~3.1 GWp of under-development renewable projects
- 1.6 GW of thermal capacity
- 3 GW of pumped storage capacity
Project Timeline
The power plant is scheduled to be commissioned within 72 months from the date of execution of the Power Purchase Agreement (PPA). MPPMCL will arrange the required coal for the power plant under the SHAKTI Policy of the Ministry of Coal.
This project represents a significant step in Torrent Power's growth strategy and reinforces its position as a major player in India's power sector. The company's focus on using advanced technology for thermal power generation, while also expanding its renewable energy portfolio, demonstrates its commitment to meeting India's growing energy needs in a more sustainable manner.
Historical Stock Returns for Torrent Power
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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-1.68% | -4.27% | -7.37% | -2.82% | -26.04% | +268.67% |