Torrent Power soared 10.68% to Rs 1,265.80 after the company said it had emerged as a successful bidder and received a letter of award (LoA) from MSEDCL for setting up a grid-connected solar power project. 306 MW network in Nasik in Maharashtra.
The LoA is received from the Maharashtra State Electricity Distribution Company (MSEDCL). The project is conceived by MSEB Solar Agro Power (MSAPL) under MSKVY 2.0 scheme for implementation of solarization at feeder level under component C of PM-KUSUM scheme connected to the distribution network.
MSAPL has formed an SPV named MSKVY Ninth Solar SPV (SPV project) to enable the development of the project. MSAPL has identified profitable land parcels and obtained some permissions on behalf of the SPV project.
Torrent Power will acquire 100% stake in the SPV of the project and will get central financial assistance (CFA) from the Central Government for the eligible capacity under the terms of the PM-KUSUM scheme.
The project will be commissioned within 18 months of the LoA at an estimated cost of Rs 1,540 crore. The project tariff is Rs 3.10/kWh for a period of 25 years.
With this award, Torrent Powers' renewable capacity under construction has increased to 1.7 GW. Upon completion of these 1.7 GW projects, Torrents' renewable capacity will increase to 3 GW in the next 18 to 24 months.
As part of its growth strategy, the company is also working on other green energy avenues such as pumped storage hydropower and green hydrogen.
Torrent Power is an integrated private sector electric company dedicated to the business of energy generation, transmission and distribution.
The company's consolidated net profit decreased by 47.4% to Rs 359.83 crore with a 1.2% decline in net sales to Rs 6,366.09 crore in Q3FY24 over the third quarter of fiscal year 23.
The bond hit an all-time high of Rs 1,275 in today's intraday session.
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First published: March 11, 2024 | 09:51 IS
