LIC-Backed Power Generation Company Signs MoU of 5-GW Solar-Wind Hybrid Project with Government of Gujarat
The stock gave multibagger returns of 155 per cent 1 year whereas the BSE Sensex Index is up by 22.5 per cent.
Torrent Power Limited, the integrated power utility of diversified Torrent Group, has reaffirmed its commitment towards a green and sustainable future as it submitted two Shapath Patras to the Union Ministry of New and Renewable Energy, Government of India at the 4th Edition of RE-Invest at Gandhinagar.
The Company has submitted a ‘Shapath Patra’ to achieve 10 gigawatts (GW) of installed Renewable Energy (RE) capacity by 2030, with an investment of Rs 57,000 crore. This investment is expected to generate direct and indirect employment for around 25,000 people. As part of these commitments, Torrent Power signed a Memorandum of Understanding (MoU) with the Government of Gujarat for the execution of a 5 GW solar, wind or solar-wind hybrid project at Dwarka District in the State of Gujarat.
For next-generation energy reforms, Green Hydrogen is an important element, which is slated to play a critical role in achieving net-zero emissions and decarbonizing hard-to-abate sectors. Torrent Power is actively pursuing opportunities to develop Green Hydrogen and Green Ammonia Production projects to cater to the export and domestic markets.
The second ‘Shapath Patra’ was submitted for setting up 1,00,000 Kilo Tonnes Per Annum (KTPA) Green Ammonia production facility with an investment of Rs 7,200 crore and employment generation for around 1,000 people.
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.
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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 87,000 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 155 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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