Torrent Power MoUs: ₹47,350 crore Gujarat capex in 2026

What Torrent signed with the Gujarat government

Ahmedabad-based Torrent Group said it has signed four non-binding memorandums of understanding (MoUs) with the Gujarat government, covering renewable energy, pump storage hydro projects, green hydrogen production and power distribution. The proposed investment across the four MoUs totals more than ₹47,000 crore, with multiple reports pegging the committed amount at ₹47,350 crore. The agreements were announced at the Vibrant Gujarat summit, where the MoUs were highlighted on the final day of the event.

Torrent Group Chairman Emeritus Sudhir Mehta said the proposed projects are expected to create more than 26,000 direct and indirect jobs in Gujarat. The group’s power arm, Torrent Power, was the signatory for the proposed investments. The MoUs are non-binding, which typically means the projects are subject to detailed feasibility work, regulatory approvals, land and evacuation readiness, and final commercial terms.

Four MoUs: projects, capacities, and capex

The largest of the four pacts is focused on renewable generation. It involves setting up 3,450 MW of solar power projects and 1,045 MW of hybrid power projects. The proposed investment for this package is ₹30,650 crore.

A second MoU covers development of infrastructure for a solar park of 7,000 MW capacity in Banaskantha district. The company proposed an investment of ₹4,500 crore for this infrastructure.

The third agreement is for setting up a green hydrogen production facility with a capacity of 100 KTPA (kilo tonnes per annum), with a proposed investment of ₹7,200 crore. Multiple reports also describe this as a green hydrogen or green ammonia project, with the location referenced as Banaskantha and or Dahej.

The fourth MoU pertains to Torrent Power’s electricity distribution business. It involves a proposed investment of ₹5,000 crore across Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Mandal Becharaji SIR.

Where the projects are planned in Gujarat

For the renewable generation MoU, the planned project districts mentioned include Banaskantha, Jamnagar, Patan and Surendranagar. The solar park infrastructure MoU is tied specifically to Banaskantha.

For the hydrogen and or ammonia facility, Banaskantha and Dahej are referenced as potential sites. The distribution capex is planned in key urban and industrial areas where Torrent Power runs its distribution business, including Ahmedabad, Gandhinagar and Surat, along with Dahej SEZ and Mandal Becharaji SIR.

How the MoUs were executed

Torrent Power signed the MoUs with the Gujarat government under the 10th edition of the Vibrant Gujarat Global Summit. The pacts were signed between Torrent Power and the Gujarat Energy Development Agency (GEDA) in Gandhinagar.

While the MoUs cover pump storage hydro projects as an area, the project capacity and capex break-up provided in the disclosures is specific to solar, hybrid, solar park infrastructure, green hydrogen and distribution investment.

Market reaction: Torrent Power stock moves closer to a record high

Investor interest in Torrent Power shares picked up following the MoU-related announcements and the company’s broader clean-energy commitments disclosed around the same period.

According to trading data cited in the report, Torrent Power share price climbed 6.7% to ₹1,900.7 on the BSE during Tuesday’s intraday trade, before paring gains to trade 1.2% higher at ₹1,801 at 1:20 PM. The BSE Sensex was up 85 points (0.10%) at that time. With the move, Torrent Power’s stock came close to its record high of ₹1,906.5, previously touched on July 31, 2024.

RE-Invest commitments: 10 GW renewables by 2030

Separately, Torrent Power reiterated a broader investment commitment of ₹64,000 crore in green and sustainable projects. At the 4th edition of RE-Invest at Gandhinagar, Torrent Power submitted a ‘Shapath Patra’ to achieve 10 GW of installed renewable energy capacity by 2030, with an investment of ₹57,000 crore.

As part of these commitments, Torrent Power also signed an MoU with the Government of Gujarat for execution of a 5 GW solar, wind or solar-wind hybrid project at Dwarka district. In addition, the company submitted a second ‘Shapath Patra’ to set up a 1,00,000 KTPA green ammonia production facility with an investment of ₹7,200 crore.

Torrent Power’s current generation base and pipeline

Torrent Power described itself as an integrated power utility with presence across generation, transmission and distribution. Reported installed generation capacity figures include 4.4 GWp in aggregate capacity, comprising 2.7 GW of gas-based capacity, 1.3 GWp of renewable capacity and 362 MW of coal-based capacity.

A separate capacity disclosure in the supplied reports puts aggregate installed generation capacity at 4,287 MW, comprising 2,730 MW of gas-based capacity, 1,195 MW of renewable capacity and 362 MW of coal-based capacity. It also states that renewable energy projects of 953 MW are under development, and that total generation capacity including projects under advanced stages of development is 5,240 MW.

Key facts table: MoUs and proposed investments

Market impact: what investors are tracking

The market response reflects two layers of information. First is the scale of the proposed Gujarat capex under the four MoUs, which together are positioned across generation, hydrogen and distribution. Second is Torrent Power’s stated goal to reach 10 GW installed renewables by 2030 backed by a ₹57,000 crore investment plan.

Investors are also likely mapping these plans to India’s broader renewable target of 500 GW by 2030, which is explicitly referenced in the material. For Torrent Power, the disclosures highlight a continued pivot toward renewables and related molecules such as green hydrogen and green ammonia, alongside investment in the regulated distribution business where cash flows are typically linked to approved capex and tariff frameworks.

Analysis: why Gujarat matters for Torrent Power’s buildout

Gujarat remains central to Torrent Power’s operating footprint, particularly through its established distribution presence in cities such as Ahmedabad, Gandhinagar and Surat, and industrial hubs such as Dahej. The MoUs also point to district-level renewable buildouts and enabling infrastructure such as solar park development, which can support faster project execution if transmission and land arrangements are aligned.

At the same time, the MoUs are non-binding, so the key near-term markers for investors will be project conversion into binding agreements, timelines for commissioning, and the financing and execution plan for large-capacity additions. The hydrogen and ammonia projects, in particular, will depend on offtake arrangements and project economics, while the distribution investment will typically be watched through regulatory filings and capex approvals.

Conclusion

Torrent Power’s four MoUs with the Gujarat government outline a proposed ₹47,350 crore investment across solar and hybrid generation, solar park infrastructure, a 100 KTPA green hydrogen and or green ammonia facility, and distribution network spending. The company has also reiterated a 10 GW renewables goal by 2030 with a ₹57,000 crore investment plan, alongside additional commitments in Gujarat. The next set of developments to watch will be project-specific announcements as the MoUs move toward execution, including location finalisation, tendering, and commissioning schedules.