Torrent Power acquire 156 MW thermal power plant of Haldia Energy Limited, for Rs. 7.9 billion.
Torrent Power Limited, one of the leading power companies in India, has recently announced its acquisition of a 156 MW thermal power plant in West Bengal’s Haldia district. The deal has been signed with CESC Limited, Haldia Energy Limited, and other shareholders for a consideration of Rs. 7.9 billion. The acquisition is expected to provide Torrent Power with an additional source of power generation and enable the company to expand its footprint in the eastern region of the country.
The thermal power plant in Haldia is located in close proximity to the Haldia port, which will help Torrent Power to enhance its coal sourcing capabilities and reduce its logistics costs. The plant has been operational since 2014 and has a long-term power purchase agreement with the West Bengal State Electricity Distribution Company Limited (WBSEDCL). The acquisition will help Torrent Power to diversify its power generation portfolio, which currently includes renewable energy sources such as wind and solar power.
The key features of the deal are as follows:
- Torrent Power will acquire a 156 MW thermal power plant in Haldia, West Bengal, from CESC Limited, Haldia Energy Limited, and other shareholders for a consideration of Rs. 7.9 billion.
- The thermal power plant has been operational since 2014 and has a long-term power purchase agreement with the WBSEDCL.
- The acquisition will provide Torrent Power with an additional source of power generation and enable the company to expand its footprint in the eastern region of India.
- The thermal power plant is located in close proximity to the Haldia port, which will help Torrent Power to enhance its coal sourcing capabilities and reduce its logistics costs.
- The acquisition will help Torrent Power to diversify its power generation portfolio, which currently includes renewable energy sources such as wind and solar power.
The following table summarizes the key details of the deal:
| Particulars | Details |
|---|---|
| Target Company | CESC Limited, Haldia Energy Limited, and other shareholders |
| Consideration | Rs. 7.9 billion |
| Assets Acquired | 156 MW thermal power plant in Haldia, West Bengal |
| Operational Since | 2014 |
| Power Purchase Agreement | Long-term agreement with WBSEDCL |
| Benefits to Torrent Power | Additional source of power generation, expansion of footprint in eastern India, enhanced coal sourcing capabilities, and diversification of power generation portfolio |
In conclusion, the acquisition of the thermal power plant in Haldia by Torrent Power Limited is a strategic move that will help the company to strengthen its position in the power sector. The acquisition will provide Torrent Power with an additional source of power generation and help the company to reduce its dependence on renewable energy sources. The proximity of the thermal power plant to the Haldia port will also help Torrent Power to enhance its coal sourcing capabilities and reduce its logistics costs. Overall, the acquisition is a win-win situation for both Torrent Power and the target companies.