Adani Power on Monday announced entering into a binding agreement with Gautam Thapar-led Avantha Group to buy out the latter’s Korba West Power Company Ltd that has executed a 600 MW power project at Korba in Chhattisgarh and is developing a similar capacity unit as part of the project’s expansion.
HT had first reported on the deal on Monday. While Adani Power did not disclose the deal size, sources in the know said it is likely to around Rs 4,400 crore. Avantha Group said the deal is valued in excess of Rs 4,200 crore.
“Adani Power Ltd (APL), a subsidiary of Adani Enterprises Ltd and a part of Adani Group has executed a binding term sheet for acquisition of 100% shares of Korba West Power Co Ltd (KWPCL) from Avantha Power & Infrastructure,” a statement from Adani group said. “KWPCL owns a completed 600 MW coal-based power plant at Korba and an expansion phase in progress.”
This is the second major acquisition by Adani Power in less than four months after it bought the Rs 1,200 MW coal-fired Udupi plant from the debt-laden Lanco Infra for Rs 6,000 crore.
The deal makes Adani Power the largest private sector power utility in the country with an installed capacity of 11,040 MW, Adani Group said.
“This is the time for consolidation in the power sector... This acquisition consolidates our pan-India presence and reaffirms our belief in the reforms processes underway in the power and coal mining sectors… this Korba acquisition expands our footprint particularly in the coal mining belt and we are bullish of expanding our presence further. We are committed towards achieving our target of 20,000 MW by 2020,” Adani Group chairman Gautam Adani said.
Excluding the Korba deal, Adani Power has operational capacity of 9,240 MW, comprising 4,620 MW at Mundra in Gujarat, 3,300 MW at Tiroda in Maharashtra and 1,320 MW at Kawai in Rajasthan. It has a 660 MW plant ready for commissioning at Tiroda, Maharashtra.