The big ticket deal comes less than three weeks after Reliance Power agreed to acquire three hydel projects of Jaypee Group. Adani Power, which is part of diversified Adani Group, was also in the race for those hydro plants.
Adani Power would acquire Lanco Infratech's 1,200 MW imported coal-fired Udupi thermal power plant in Karnataka.
Making the announcement, Lanco Infratech said the deal is "is valued at more than Rs 6,000 crore". It includes Rs 4,000 crore debt component.
"This transaction will support the company in reducing its debt and will enable Lanco to receive about Rs 2,000 crore as cash and additionally, Adani Power will take Udupi plant's long-time debt of around Rs. 4,000 crore," it said in a statement.
While 90 per cent of the electricity generated from the plant is supplied to Karnataka, the remaining is given to Punjab.
According to Lanco Infratech, the Udupi plant is the "first independent power project in the country based on 100 per cent import coal with a captive jetty of four million tons per annum and an external coal handling system in the new Mangalore Port Trust."
The capacity can be, if required, expanded to handle another four million ton capacity, it added.
Lanco Infratech already has signed a pact with Karnataka government for expanding the plant's generation capacity to 1,320 MW.
Currently, Adani Power has an installed generation capacity of about 8,580 MW. The proposed acquisition would help in expanding its portfolio.
On July 27, Reliance Power had announced it would acquire three hydel plants of Jaypee group.
Lanco Infra sells power plant to Adani for $327 mln
(Reuters) India's Lanco Infratech Ltd said it has sold a 1,200-megawatt (MW) thermal power plant in the southern state of Karnataka to Adani Power Ltd for about 20 billion rupees ($327 million), as the company looks to cut debt.
Adani Power, part of the Adani business conglomerate led by billionaire Gautam Adani, will take on the plant's existing debt of about 40 billion rupees as part of the deal, Lanco said in a statement late on Wednesday.
Lanco, which produces power, builds roads and constructs residential and commercial buildings, in July last year started a process to restructure its $1.3 billion debt after economic weakness hurt some of its core businesses.
It had a net debt of about 360 billion rupees ($5.9 billion) at the end of March this year, according to the company website.
The coal-based power plant in Udupi has two units of 600 MW each and imports about 4 million tonnes of coal per year from Indonesia, according to Lanco's website.
(1 US$= 61.2150 Indian rupees)