Torrent Power hits record high on signing an MOU with Maharashtra government for hydro projects

Torrent Power share price:  On Wednesday, Torrent Power shares reached an all-time high of Rs 725.4 on the BSE. The energy and power company stock opened at Rs 634.35, up from the previous close of Rs 611.65 on the exchange. The scrip rallied after the Ahmedabad-headquartered company signed a memorandum of understanding (MoU) with the Maharashtra government for the development of three pumped storage hydro projects of 5,700 MW capacity. Torrent Power finished at 709.6, up by 15.91 per cent or Rs 97.4 on NSE.

In a regulatory filing, the company said, "The projects would entail an investment of about Rs 27,000 crore and would provide employment to approximately 13,500 people during the construction period. Torrent intends to execute these projects over a period of 5 years."

The projects would be executed at three sites identified by Torrent, namely Karjat (3,000 MW) in Raigarh District, Maval, (1,200 MW) and Junnar (1,500 MW) in Pune District. All the sites are off-stream and the projects are planned to provide a minimum of six hours of energy storage on a daily basis, the statement said further. 

Torrent Power currently has an aggregate installed generation capacity of 4.1 GW, which consists largely of clean generation sources such as gas (2.7 GW) and renewables (1.07 GW). It also has a Renewable capacity of 0.7 GW under development.

Torrent's growth focus in power generation remains on renewables. To complement its growing portfolio of renewables and distribution, Torrent is strategically entering the storage space to fulfil the void left in the grid by intermittent renewable power. Torrent Power, with a turnover of Rs 25,694 crore (about USD 3 billion), is the integrated power utility of the diversified Torrent Group with group revenues of Rs 37,500 crore (about USD 4.50 billion) and group market cap of Rs 87,000 crore (about USD 10.50 billion). It is one of the largest companies in the country's power sector with a presence across the entire power value chain of generation, transmission, and distribution.

Torrent Power share price history

Torrent Power's stock has given gained nearly 44 per cent in the last 12 months (from June 7, 2022) as per data shown on Trendlyne. In comparison, the headline index Nifty 50 has rallied over 13 per cent.

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(With PTI inputs)