Torrent Power shares rose more than 12% to hit an all-time high on Monday. The rise in share prices was seen after the power utility secured a letter of allotment of Rs 1,540 crore from Maharashtra State Electricity Distribution Co Ltd (MSEDCL).
The scope of work includes setting up a 306 MW grid-connected solar power project in Nashik, Maharashtra, Torrent Power said in a stock exchange filing.
The initiative, led by MSEB Solar Agro Power (MSAPL) as part of the MSKVY 2.0 scheme, aims to implement feeder-level solarization within the distribution network as part of component C of the PM-KUSUM scheme.
Reacting to the development, shares of Torrent Power rose to a new all-time high of ₹1,288.45 on the BSE. This has also helped the company achieve a market capitalization of around Rs 60,850 crore.
MSAPL has established a special purpose vehicle (SPV) named MSKVY Ninth Solar SPV (SPV project) to facilitate the development of the project. They identified profitable land parcels and obtained certain permissions on behalf of the project SPV.
Torrent Power will acquire 100% of the SPV shares of the project and will receive Central Financial Assistance (CFA) from the Central Government for the eligible capacity, as outlined in the terms of the PM-KUSUM scheme.
This award brings Torrent Power's renewable capacity under construction to 1.7 GW. Once these projects are completed, Torrent's renewable capacity will increase to 3 GW in the next 18 to 24 months.
The company is also pursuing other avenues in the green energy space, including pumped storage hydropower and green hydrogen.
