Torrent Power surges 13% on winning 306 MW solar power project

Shares of Torrent Power hit a new high of Rs 1,288.45, rallying nearly 13 per cent on the BSE in Monday’s intraday trade, after the company was awarded a 306 MW solar project in Maharashtra.
 

At 10:16 am, the stock of the integrated power utilities company was quoting 12 per cent higher at Rs 1,283, as compared to a 0.32 per cent decline in the S&P BSE Sensex. In the past eight months, the market price of the company has zoomed 107 per cent.
 

In an exchange filing last week, Torrent Power had said that the company has emerged as a successful bidder and has received letter of award (LOA) from Maharashtra State Electricity Distribution Co. Limited (MSEDCL) for setting up of a 306 MW grid-connected solar power project, at 48 distributed locations, across Nasik District in Maharashtra.
 

The project is to be commissioned within the next 18 months at an estimated cost of Rs 1,540 crore. The tariff for the project is Rs 3.10/kWh for the period of 25 years, Torrent Power said.
 

Meanwhile, Torrent Power expects to commission its 300 MW solar plant earlier than expected, by April 2024, with an improved return profile given the recent reduction in solar module prices. With this project, Torrent’s under construction renewable capacity will increase to 1.7 GW. Upon completion, Torrent’s renewable capacity will increase to 3 GW in the next 18-24 months.
 

Additionally, a 175 MW hybrid project is on track to be commissioned by December 2025 and will cater to 100 per cent merchant sales, like the DGEN plant.