Torrent Power share: The company is going to set up a big power plant in this state - investment of ₹ 22,000 crore

News Topical, Digital Desk : Torrent Power on Saturday informed that the company has received a big project, which costs around Rs 22,000 crore. In the information given to the exchange, the company said that it has received a Letter of Award (LOA) from Madhya Pradesh Power Management Company Limited (MPPMCL) for the development of a new 1600 MW coal-based power plant and supply of power generated from it. This letter of award has been received after a competitive bidding process organized by MPPMCL, in which the tariff was fixed at Rs 5.829 per unit.

This project, with an investment of about Rs 22,000 crore, will be Torrent Group's largest investment in the power sector. The company will set up a 2x800 MW ultra-supercritical greenfield power plant in Madhya Pradesh and the power generated from its full capacity will be supplied to MPPMCL. Coal for the plant will be provided by MPPMCL under the SHAKTI policy of the Ministry of Coal.

The plant will be operational within 72 months The plant is expected to be operational within 72 months and a 25-year Power Purchase Agreement (PPA) will be signed for it. Torrent Power said that the project will play an important role in meeting the government's target of adding 80 GW of coal-based capacity by 2032 and will ensure grid stability. The project will create about 8,000–10,000 direct and indirect jobs during construction and about 1,500 jobs during operation. With this, Torrent Power's total locked-in generation capacity will increase to 9.6 GWp, along with the addition of 3 GW of pump storage capacity. 

Stock Performance The company's shares closed 0.75 per cent down at Rs 1,238.90 on Friday. The company's shares have declined by 28.94 per cent in the last one year. 

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