In over Rs 4,200 crore deal, Adani Power buys Avantha’s 600 MW power plant at Korba; Gautam Adani says ‘bullish’ on expansion

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Ahmedabad | Updated: November 24, 2014 6:29:30 PM

Adani Power's new acquisition owns a 600 MW coal-based power plant at Korba in Chhattisgarh.

Korba West Power Company, a subsidiary of Avantha Power & Infrastructure, has been acquired by Adani Power. (Image: Avantha Website)Korba West Power Company, a subsidiary of Avantha Power & Infrastructure, has been acquired by Adani Power. (Image: Avantha Website)

Couple of months after it acquired Lanco Infratech’s 1200 MW power plant at Udupi, Adani Power on Monday announced the acquisition of Korba West Power Co Ltd (KWPCL) that owns a 600 MW coal-based power plant at Korba in Chattisgarh.

According to an official release, the company has “executed a binding term sheet for acquisition of 100 percent share of KWPCL from Avantha Power and Infrastructure”.

Officials of the Adani Power refused to disclose size of the deal or divulge information related to the source of funds for this acquisition. Meanwhile, PTI quoting a statement from Avantha Group, stated that the deal size was in excess of Rs 4,200 crore.

Adani Power currently has a operational capacity of 9240 MW, comprising of 4620 MW at Mundra in Gujarat, 3300 MW at Tiroda in Maharashtra and 1320 MW at Kawai in Rajasthan. “With the acquisition of 1200 MW Udupi power plant which is due for completion shortly, and with KWPCL now, the installed base of Adani Power will increase to 11,040 MW…”, the release added. The Udupi power plant was acquired by the company at a cost of about Rs 6000 crore in August this year.

“This is the time for consolidation in the Indian power sector; and as a leading private power producer, Adani Power, has taken the lead in acquiring power assets which are strategic fit to group businesses and potentially at the lowest end of the cost curve…. The acquisition of KWPCL expands our footprint in India particularly in the coal mining belt of India and we are bullish of expanding our presence further in the country,” stated Gautam Adani, chairman of Adani Group in the release.

 

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