Torrent in power

Torrent Power is probably the most buzzing stock currently; from its close of Rs.1160.80, it opened 2% higher at Rs.1185.40 and rose to an intraday high at Rs.1249.25, rising over 7.5%.

The stock is up on the back of receipt of Rs.3650 crore order for setting up a 300 MW solar hybrid project.

The order comes from its own distribution unit and is to be commissioned within 24 months from signing the Power Purchase Agreement (PPA).

The project will have a tariff of Rs.3.65/kwh and the contract is for 25 years.

The annual CUF will not be less than 50% for any of the year during the term of the PPA & rated power capacity of wind and solar will be in ratio of 2:1.

For meeting the 50% CUF requirement, the company plans to install 480 MW of wind and solar capacity against contracted capacity of 300 MW.