Torrent Power Share Price Rise 6% on Rs 1,825-Crore Order Win

Torrent Power, a leading power firm shares a rise of 6% on the projected cost of ₹1825 crore. This news was shared by the company itself on an early trade on April 1. This amount will be commissioned within 24 months of the Power Purchase Agreement (PPA). The contract period has been set to 25 years from the actual date of commission of the project. With a massive rise in shares, the company also received a letter of reward for setting up a distribution unit of a 150MW wind-solar hybrid project. This contract is a complete win for the company with an evaluation of its value.

What is Torrent Power?

Torrent Power Ltd or Torrent Power is an India-based company for power utility. The company is responsible for generating, transmitting, and distributing electricity. The company also manufactures and supplies its power cables. In recent times the company has been in the news for its positive shares in the market.

The Company Quote:

With its continuous growth on April, 1 the company quoted a piece of significant news “... has received Letter of Award from Torrent Power Limited-Distribution Unit for setting up of 150MW (RE Power) Grid-Connected wind-solar hybrid projects under Greenshoe option.” in its press release.

For this project, the annual capacity utilization factor would not be less than 50% for any time of the year given under the Power Purchase Agreement (PPA). The rated power capacity by the company for wind and solar is set to be in a 2:1 ratio. To meet this demand the company has planned to install a 245MW wind solar capacity plant in addition to the 150MW plant as contracted. The filing has already been quoted for a tariff of ₹3.65 per kilowatt for the project.

With a positive response, the company has gained the confidence of its investors with the rise of the share price. This is the second consecutive award for the company for its distribution unit this year. The previous one was on March 16 when the company got the Letter of Award for setting up a 300MW re-power grid connected under a wind-solar hybrid project valued at Rs 3650 crore.

Recent achievements of the company:

Following are the recent gains in the market by the Torrent Power:

The company also received orders from Maharashtra State Electricity Distribution Co Limited (MSEDCL) at Rs 1540 crore for 306MW of grid-connected Solar Power Plant in Nasik Maharashtra spread over 48 locations.

In February the company received an order from Railway Energy Management Company Limited (REMCL) for a grid connection of renewable power projects at a value of 2700 crore. The tariff for this project was set at 4.25 rupees per kilowatt for the next 25 years.

The year-on-year growth of Torrent Power is growing by 54% which is incredible according to the market shares. Therefore currently, the company has a vision of focusing on the generation capacity and aims at fulfilling the government's goal of achieving 500GW of non-fossil fuel capacity by the end of 2030.