LIC-backed power generation company receives Letter of Intent for 1,500 MW pumped hydro storage project from MSEDCL
The stock gave multibagger returns of 160 per cent 1 year whereas the BSE Sensex Index is up by 22.5 per cent.
Torrent Power Ltd has achieved a significant milestone in the energy sector by securing a Letter of Intent for a 1,500 MW Pumped Hydro Storage Project from MSEDCL. This marks a groundbreaking development as it is the first long-term Pump Storage Capacity LOI to be awarded in India. The project will be implemented in Raigad District, Maharashtra, and will provide energy storage solutions to address the increasing need for firm, reliable, and dispatchable renewable power.
The Pumped Hydro Energy Storage Facility Agreement (PHESFA) stipulates that Torrent Power will supply a contracted capacity of 1,500 MW to MSEDCL for 8 hours per day. The input energy for charging the storage facility will be provided by MSEDCL. This project aligns with Torrent Power's strategic focus on expanding its renewable energy portfolio and contributing to India's ambitious targets for sustainable energy generation.
As part of its growth strategy, Torrent Power is also exploring other green energy avenues, such as Green Hydrogen and Green Ammonia production. The company's commitment to sustainable energy is evident in its efforts to develop multiple Pumped Storage Project sites across India. With a planned investment of Rs 25,000 to Rs 35,000 Crores, Torrent Power aims to install a total capacity of 5 to 8 GW of PSP.
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About Torrent Power: Torrent Power, the Rs 27,183 crore integrated power utility of the Rs 41,000 crore Torrent Group, is one of the largest companies in the country’s power sector with presence across the entire power value chain – generation, transmission and distribution.
Generation: The Company has an aggregate installed generation capacity of 4.4 GWp comprising of 2.7 GW of gas-based capacity, 1.3 GWp of renewable capacity and 362 MW of coal-based capacity. Further, Renewable projects of 3.1 GWp are under development. Total generation capacity, including projects under advanced stages of development, is 7.5 GWp
Distribution: The Company distributes nearly 30 billion units to over 4.13 million customers in the cities of Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat, Union Territory of Dadra and Nagar Haveli and Daman and Diu (DNH & DD); Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra and Agra in Uttar Pradesh.
Torrent Power is widely considered to be the leading power distributor in India and in its licensed areas in Gujarat has the distinction of having the lowest AT&C losses and best reliability indices in the country.
The company is Mid-Cap with a market cap of over Rs 88,000 crore and has been maintaining a healthy dividend payout of 65.4 per cent. As of June 2024, the Life Insurance Corporation of India (LIC) owns a 3.32 per cent stake and the Governor of Gujarat owns a 1.47 per cent stake in the company. The stock gave multibagger returns of 160 per cent 1 year whereas the BSE Sensex Index is up by 22.5 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.
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