India Torrent Power Acquires Coal Based Nabha Plant
India’s power sector is set for a significant ownership shift as Torrent Power moves to acquire Nabha Power, which operates a 1,400 MW coal-based thermal power plant in Rajpura, Punjab. The acquisition, valued at approximately $760 million (around ₹6,889 crore), marks a strategic expansion of Torrent Power’s coal generation portfolio at a time when India is balancing rising electricity demand with long-term decarbonisation goals.
Nabha Power’s plant is a supercritical coal-fired facility, a technology designed to operate at higher efficiency levels compared to subcritical plants, resulting in relatively lower emissions per unit of electricity generated. Commissioned in 2014, the plant supplies power under a long-term power purchase agreement, providing stable contracted revenues. With this transaction, Torrent Power’s total operational capacity is expected to increase from about 5 GW to nearly 6.4 GW, strengthening its presence in northern India’s power market.The coal component of the deal is particularly significant. Despite rapid renewable energy growth, coal continues to account for the majority of India’s electricity generation, forming the backbone of base-load supply. Urban centres and industrial corridors depend heavily on coal-based power for grid reliability, especially during peak demand seasons and periods of renewable intermittency. Energy analysts note that acquiring an operational coal asset with secured offtake agreements provides predictable cash flows while ensuring dispatchable capacity in a tightening power market.
At the same time, the transaction underscores the dual reality facing India’s utilities. On one hand, the country has ambitious renewable energy targets and is expanding solar and wind capacity at scale. On the other, coal plants remain critical for ensuring uninterrupted electricity to rapidly growing cities, manufacturing hubs and infrastructure networks. In this context, coal-based assets are being evaluated not just as legacy infrastructure but as transitional anchors within a diversifying energy mix.For Torrent Power, the acquisition aligns with its integrated business model spanning generation, transmission and distribution. Industry observers suggest that consolidating operational coal assets can enhance portfolio efficiency, improve bargaining power in fuel procurement and strengthen regional grid positioning.
However, environmental planners emphasise that future competitiveness of coal assets will depend on compliance with tightening emission standards and investments in pollution control technologies. Supercritical technology offers efficiency gains, but sustained viability will require alignment with evolving environmental norms and carbon management strategies.As the deal advances through regulatory approvals, it highlights a broader restructuring underway in India’s power landscape — where legacy coal infrastructure continues to attract capital even as renewable capacity expands. The coming decade will test how effectively utilities integrate coal-based generation with cleaner energy pathways, ensuring reliability today while preparing for a lower-carbon urban future.
