Torrent Power Limited has announced its intention to acquire a 15.96% equity stake in Torrent Urja 28 Private Limited (TUPL), a newly incorporated renewable energy company in India. The move marks another strong push by Torrent Power into the clean energy space, especially through captive energy usage models that help reduce power procurement costs and dependency on the grid.

About the Target Entity – Torrent Urja 28 Private Limited

Torrent Urja 28 Private Limited, or TUPL, is a fresh entrant in India’s power sector. It was incorporated on 21st January, 2025, and has not yet recorded any turnover as of now.

TUPL has been established to set up a Hybrid Power Project in Gujarat, which will involve both solar and wind energy generation, aligning with India’s broader goals for green and renewable energy development.

It qualifies as a generating company under Section 2(28) of the Electricity Act, 2003, and is expected to play a key role in delivering reliable renewable power, especially for industrial and commercial users looking for captive consumption solutions.

Nature of the Transaction – Independent and Strategic

Torrent Power has clarified that this acquisition does not fall under the category of a related party transaction. In fact, none of the promoter or promoter group entities have any interest in TUPL.

This ensures that the deal is being carried out at arm’s length, reinforcing transparency and fairness in the financial arrangement. It also underscores that the decision is purely strategic, guided by the potential long-term value that TUPL can deliver in terms of sustainable and cost-effective energy supply.

Industry Outlook – Solar-Wind Hybrid Power

TUPL will operate in the sector of renewable energy, specifically targeting hybrid solar and wind power generation. This industry is seeing massive growth, not just in Gujarat but across India, as businesses and utilities shift towards clean energy alternatives.

Hybrid systems allow for better efficiency and higher power output by compensating for the variability of individual sources (solar during day, wind during night). With evolving grid policies and open access regulations, captive models like these are becoming increasingly viable and attractive.

Purpose Behind the Acquisition – Captive Energy Benefits

Torrent Power has outlined a clear objective for investing in TUPL: to offtake the contracted quantity of electricity generated from the hybrid project as a captive user in Gujarat.

This model offers significant commercial and financial benefits, including:

• Lower cost of power compared to grid tariffs

• Energy security through direct access

• Green energy compliance for ESG commitments

• Tax incentives and cross-subsidy waivers under current regulations

Such captive arrangements help high-consumption users like Torrent Power ensure stable and cost-efficient electricity supply, reducing dependency on fluctuating market rates.

Investment Details and Structure

Torrent Power, along with other user members, intends to subscribe to equity shares of TUPL in one or more tranches. The total commitment is up to ₹35.00 crores, ensuring a minimum 26% equity ownership in the target entity.

Of this, Torrent Power’s share is capped at ₹21 crore, which will secure a 15.96% stake in the company.

This level of investment reflects:

• Torrent Power’s proportionate share in the total capacity

• Strategic intent to become an active participant in project development and governance

• Confidence in the long-term value of the hybrid energy venture

Mode and Timing of the Acquisition

The acquisition will be executed through cash consideration, making the process straightforward and efficient.

The transaction will be carried out in phases, subject to achievement of agreed milestones as defined in the investment agreement. This tranche-based structure ensures that the company only releases capital based on project progress, thereby minimizing risk.

There are no regulatory or governmental approvals required for this acquisition, which means the process is expected to move quickly once the initial milestones are fulfilled.

Strategic Relevance for Torrent Power

This investment aligns perfectly with Torrent Power’s core business in the electricity sector. While TUPL is a newly formed entity, its line of business – renewable hybrid energy – is squarely within the mainstream focus of Torrent Power.

With India targeting 500 GW of non-fossil fuel capacity by 2030, Torrent’s move places it in a strong position to:

• Expand its renewable portfolio

• Serve large industrial clients with green energy

• Reduce its carbon footprint

• Comply with future ESG and regulatory norms

The captive model also enables Torrent Power to act as both a developer and beneficiary, creating a circular energy economy within its ecosystem.

About Torrent Power: A Quick Snapshot

Torrent Power is among India’s leading players in the power sector, with operations in:

• Generation (thermal and renewable)

• Transmission and Distribution

• Electricity Trading

It caters to major cities like Ahmedabad, Surat, and Bhiwandi and has a reputation for efficiency, technological adoption, and customer-centric service.

With this investment in TUPL, the company is doubling down on green energy and reinforcing its leadership role in India's energy transition.

Conclusion: A Smart Green Move by Torrent Power

The planned acquisition of 15.96% equity in Torrent Urja 28 Private Limited signals Torrent Power’s clear focus on future-ready energy solutions. With an investment of up to ₹21 crore, Torrent will gain access to a captive hybrid energy source, offering significant cost and ESG advantages.

The move is:

• Strategic

• Non-related

• In line with the core business

And most importantly, it showcases Torrent Power’s vision to lead the renewable energy revolution in India, starting with Gujarat.

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