Torrent Power 3GW PHES in Maharashtra: L&T, MSEDCL 2024

Overview: a storage push takes shape in Maharashtra

Torrent Power has moved further into energy storage after contracting Larsen & Toubro (L&T) to build a 3 GW pumped hydro energy storage (PHES) plant in Maharashtra. The project, referred to as Saidongar-1, was described by L&T as India’s largest pumped hydro energy storage facility to date. Financial terms of the L&T contract were not disclosed. The development sits alongside a series of state-level agreements and utility tenders that have put pumped storage at the centre of Torrent Power’s expansion plans. In market trading, Torrent Power’s stock has reacted sharply at multiple points as the company disclosed awards and quarterly results tied to its storage pipeline.

L&T contract for 3 GW PHES: what was disclosed

Torrent Power has contracted L&T to construct a 3 GW PHES plant in Maharashtra. L&T did not disclose the contract value, but it flagged Saidongar-1 as the largest pumped hydro energy storage project in India so far. Pumped hydro projects typically involve large civil works and long construction timelines, so the choice of contractor can be a key milestone for execution visibility. The limited disclosure suggests the key takeaway for investors is project scale and the start of on-ground progress rather than immediate financial impact. The announcement also adds detail to Torrent Power’s broader storage roadmap in western India.

Maharashtra MoU trail: from 5,700 MW to 5,600 MW

Torrent Power signed a memorandum of understanding (MoU) with the government of Maharashtra’s Department of Water Resources to establish the project in September 2024, as referenced in the provided information. Separately, the company has also disclosed a revised MoU with the Department of Water Resources that updates the planned pumped storage capacity to 5,600 MW from an earlier 5,700 MW plan. The earlier MoU, signed with the Department of Energy in June 2023, had assigned Torrent Power the development of three pumped storage hydro projects in the state. Those sites were identified as Karjat (3,000 MW) in Raigarh district, Maval (1,200 MW) in Pune district, and Junnar (1,500 MW) in Pune district. The estimated cost for the earlier 5,700 MW plan was put at about INR 27,000 crore (also referenced as INR 270 billion and about US$1.3 billion). Torrent Power has stated that the projects are designed to offer a minimum of six hours of energy storage on a daily basis.

MSEDCL awards: 40-year supply and a Rs 1,680 crore contract size

Torrent Power has also received letters from Maharashtra State Electricity Distribution Company (MSEDCL) for long-term supply of energy storage capacity from an InSTS-connected pumped hydro storage plant. The term of the contract disclosed is 40 years, and MSEDCL will provide the input energy required for charging. In one set of disclosures, Torrent Power said it received two Letters of Awards from MSEDCL on October 07, 2024, for (1) 500 MW energy storage capacity against the quoted bid and 1,000 MW under a Greenshoe Option, and (2) an additional 500 MW under a Greenshoe Option. Together, these add up to 2,000 MW of energy storage capacity. The company disclosed the contract size as INR 1,680 crore, and said the total capacity is to be commissioned within 48 months from signing of the Energy Storage Facility Agreement. In a separate disclosure, Torrent Power said it received a Letter of Intent (LOI) from MSEDCL to provide 1,500 MW of energy storage capacity over a 40-year period from a pumped hydro storage plant. Under the Pumped Hydro Energy Storage Facility Agreement (PHESFA) described, the contracted capacity is capable of eight hours of scheduled discharge, with a maximum continuous discharge of five hours per day.

Stock moves: sharp reactions to awards and quarterly numbers

Torrent Power shares have seen notable spikes around these announcements. One trading session saw the stock zoom 9.16% to an intra-day high of INR 1,983.70 on the BSE versus the previous close of INR 1,817.15, after opening at INR 1,922.95. In another session, the stock rose as much as 5.2% to an intra-day high of INR 1,873.20 after the company said it received an LOI from MSEDCL for 1,500 MW of energy storage capacity. Torrent Power also hit a 52-week high of INR 1,906.55 on July 31, 2024 following Q1 results, as referenced in the provided details. Another data point cited is that shares have gained nearly 136% over the last one year and delivered year-to-date returns of over 78%.

Profit trigger: quarterly net profit reported at Rs 246.27 crore

Separately from storage-specific news flow, Torrent Power reported a consolidated net profit of INR 246.27 crore for the quarter ended September 30, after which the shares surged over 9% and touched a one-year high level, according to the provided information. The combination of earnings momentum and a growing storage pipeline appears to have driven multiple positive trading reactions in different sessions. However, the information provided does not detail revenue, EBITDA, or cash flow, so the profit figure is best read as a headline indicator rather than a full financial picture.

Expansion beyond Maharashtra: MoUs and multi-state execution

Torrent Group has also indicated a broader capital plan across states. Torrent Power has stated it signed an agreement with the government of Maharashtra for three pumped storage hydro projects of 5,700 MW capacity and referenced an investment of INR 27,000 crore as it enters storage solutions. In Madhya Pradesh, Torrent Group pledged to invest INR 26,500 crore for pump storage capacity, and Torrent Power signed an MoU with the state’s renewable energy department. The company said it signed an MoU with the MP government to set up 2.2 GW pump storage capacity and another 2 GW of renewable capacity comprising solar and wind. The provided information also notes the company is establishing 3 GW with power purchase agreements finalised and under execution in Gujarat, Maharashtra and Karnataka, and that it is also constructing a pump storage plant in Maharashtra.

Key facts at a glance

Why it matters: storage contracting and offtake visibility

The Maharashtra developments show two parallel tracks: project execution milestones via construction contracting, and offtake visibility via long-term utility awards. The L&T contract signals movement from planning to implementation for a large PHES asset, even though pricing details were not provided. The MSEDCL letters provide a clearer commercial anchor, with a 40-year term and defined operating parameters such as scheduled discharge capability and charging energy being supplied by the utility. The revision from 5,700 MW to 5,600 MW in the state MoU shows that project pipelines can shift as plans are refined, but the overall scale remains large. For investors, the immediate market impact has been visible in sharp stock moves when letters of intent, award letters, and profit numbers were disclosed.

Conclusion: multiple agreements converge on pumped storage

Torrent Power’s recent disclosures point to a concentrated push into pumped hydro energy storage, anchored in Maharashtra through a 3 GW PHES construction contract with L&T and long-duration MSEDCL awards. Alongside this, the company has updated its Maharashtra MoU capacity to 5,600 MW from 5,700 MW and outlined major investment intentions in Maharashtra and Madhya Pradesh. Next milestones, based on what has been disclosed, include signing and progressing the relevant energy storage facility agreements and working toward the commissioning schedule of up to 48 months where stated.