Torrent Power bags 300 MW grid-connected wind solar hybrid project; stock jumps

Torrent Power share price: Shares of Torrent Power surged nearly 7 per cent higher on the BSE in the early morning deals on Monday (March 18), after the company bagged an order to set up a 300 MW grid-connected wind solar hybrid project.

As of 10:55 a.m., shares of Torrent Power traded 3.64 per cent, or Rs 42.25, higher at Rs 1,203.05 apiece on the BSE. The market capitalisation of the company at around the same time stood at Rs 57,820.6 crore.

On Friday, March 16, after market hours, the company said that it had received a letter of award (LoA) for setting up 300 MW (RE Power) GridConnected Wind Solar Hybrid Projects. 

"The company has received Letter of Award from Torrent Power Limited-Distribution Unit for setting up of 300 MW (RE Power) GridConnected Wind Solar Hybrid Projects," the filing read.

Significant terms and conditions of the order are as below:

>>Tariff - Rs 3.65 per kWh 

>> The project shall be commissioned within 24 months of the Power Purchase Agreement (PPA). 

>> The contract period shall be 25 years from the commissioning of the project. 

>>The annual capacity utilisation factor (CUF), the ratio of the annual output of the plant in kWh versus installed plant capacity for many days, shall not be less than 50 per cent for any of the years during the term of the PPA, and the rated power capacity of wind and solar shall be in the ratio of 2:1.

>> To meet the 50 per cent CUF requirement, the company plans to install 480 MW of wind and solar capacity against the contracted capacity of 300 MW.

Torrent Power share price: Past performance 

In a year, shares of Torrent Power gave a multi-bagger return of over 129 per cent against Nifty50's rise of over 29 per cent. 

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