Torrent Power Wins 2,000 MW Energy Storage Contract In Maharashtra

Torrent Power secures a significant contract for 2,000 MW energy storage capacity in Maharashtra.

Torrent Power's recent equity stake transaction with Gujarat Urja Vikas Nigam Ltd. reflects its growing influence in the energy sector. (Image Source: Torrent Power website)

Torrent Power Ltd. received a letter of award from the Maharashtra State Electricity Distribution Company Ltd. for the long-term supply of 2,000 megawatt energy storage capacity.

Under this arrangement, Torrent Power will provide energy storage capacity from its upcoming hydro storage plant located in Maharashtra, according to an exchange filing. The contract is set for a duration of 40 years, the filing said.

The company aims to establish between 5 to 8 GW of pumped storage capacity, with a projected investment ranging from Rs 25,000 to Rs 35,000 crore. The expected annual revenue from the contract is estimated to be Rs 1,680 crore, as indicated by the filing.

Also Read: Torrent Power Bags 1,500-MW Pumped Hydro Storage Project In Maharashtra

Torrent Power has also recently been part of transactions with Gujarat Urja Vikas Nigam Ltd., which acquired a 7.28% equity stake in the company. This acquisition involved the purchase of 3.5 crore shares through off-market transactions on September 25, as reported in Torrent's exchange filing. The financial details of the deal remained undisclosed.

Gujarat Urja Vikas Nigam Ltd. focuses on the bulk purchase and sale of electricity and oversees the operations of its six subsidiary companies across Gujarat, boasting a total installed capacity of 19.65 gigawatts.

Additionally, the Gujarat government holds a 1.47% equity stake in Torrent Power, while the Gujarat State Financial Services Ltd. owns 9.75%.

Also Read: GUVNL Awards Gensol Engineering 500 MW Energy Storage Project

Shares of the company fell as much as 2.54% to Rs 1,753.70 apiece, the highest level since September 16. It pared losses to close 1.03% higher at Rs 1,817.95 apiece, compared to a 0.88% advance in the NSE Nifty 50 Index.

The stock has risen 94.53% on a year-to-date basis. Total traded volume in the day stood at 0.45 times its 30-day average. The relative strength index was at 50.57.

Out of 11 analysts tracking the company, four maintain a 'buy' rating, three recommend a 'hold,' and four suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 15%.

Also Read: Tata Power, Torrent Power Bag Double Upgrade From Morgan Stanley — Here's Why

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WRITTEN BY
Divya Prata
Divya Prata is a desk writer at NDTV Profit, covering business and market n... more
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