Torrent Power firming up electricity play

This comes in the backdrop of Torrent Power placing the highest bid for power discoms of the Union territories for Dadra and Nagar Haveli, and Daman and Diu. Also, it is among firms that have bid to acquire the Chandigarh discom.

“Torrent Power Ltd has entered into a Securities Purchase Agreement with Lightsource India Ltd and Lightsource Renewable Energy (India) Ltd for the acquisition of 100% of the share capital and all securities of LREHL Renewables India SPV 1 Pvt. Ltd (SPV),” Torrent Power said in a statement on 30 July.

“The SPV operates a 50MW solar power plant, commissioned in April 2018, situated in Maharashtra. It has a long-term Power Purchase Agreement with Solar Energy Corporation of India Ltd for full capacity for a period of 25 years. Enterprise value estimated for this acquisition is around ₹317 crore including the VGF receivable,” the statement added.

Torrent Power has an installed power generation capacity of 3.87 gigawatt (GW) and is one of India’ largest integrated power utility with presence across generation, transmission and distribution space. It supplies electricity to 3.65 million customers in Ahmedabad, Gandhinagar, Surat, Dahej special economic zone, Dholera special investment region, Bhiwandi, Shil, Mumbra, Kalwa and Agra.

The growing private sector interest in India’ electricity distribution space comes in the backdrop of the Electricity (Amendment) Bill, 2021, with proposed amendments, such as measures to “de-licence” the power distribution business and make the sector more competitive. The Union cabinet may shortly consider the Bill and post the cabinet’s approval, the draft law is expected to be introduced in the ongoing monsoon session of Parliament.